| Term | Definition |
|---|
| ad valorem | Designates an assessment of taxes against property. Literally, according to value. |
| additional principal payment | A payment by a borrower of more than the scheduled principal amount due in order to reduce the remaining balance on the loan. |
| adjustable rate mortgage (ARM) | A mortgage loan whose interest rate fluctuates according to the movements of an assigned index or a designated market indicator--such as the weekly average of one-year U.S. Treasury Bills--over the life of the loan. To avoid constant and drastic fluctuations, ARMs typically limit how often and by how much the interest rate can vary. |
| adjusted basis | The original cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken. |
| adjustment date | The date on which the interest rate changes for an adjustable-rate mortgage (ARM). |
| adjustment period | The period that elapses between the adjustment dates for an adjustable-rate mortgage (ARM). |
| adjustments | Money that the buyer and sellers credit each other at the time of closing. Often includes taxes and down payment. |
| administrator/administratrix | A man/woman appointed by a court to settle the estate of a deceased person when there is no will. Contrast with executor/executrix. |
| adverse possession | The right of an occupant of land to acquire title against the real owner, where possession has been actual, continuous, hostile, visible, and distinct for the statutory period. The requirements for adversely possessing property vary between states, but usually include continuous and open use for a period of five or more years and paying taxes on the property in question. |
| affidavit | Written statement signed and sworn to before some person authorized to take an oath. |
