Mortgage Dictionary ADJUSTABLE RATE MORTGAGE (ARM) A mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Also sometimes known as the re-negotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage. AMORTIZATION The periodic principal pay down of a loan. ANNUAL PERCENTAGE RATE (APR) An interest rate reflecting [...]

An appraisal is an estimate of a home’s value provided to the lender based on a certified appraiser’s expert opinion.  Most lenders require an appraisal to okay a mortgage on a particular property.  Appraisals are done independently by the lender to ensure that the home value is in line with the intended loan amount.

Mortgage application fees are fees that are paid upon application for a home loan. An application fee may frequently include charges for property appraisal ($200-$400) and a credit report ($30-50).

A mortgage application is an initial snapshot of your eligibility to perform on a home loan or mortgage.

The annual percentage rate is the interest that you pay on a loan, plus any closing costs divided by the term of the loan.

A repayment method in which the amount you borrow is repaid gradually though regular monthly payments of principal and interest.

Accrued Interest is interest that is earned but not paid, adding to the amount owed.  Same as Negative amortization.

A consumer with the best credit rating, deserving of the lowest prices that lenders offer. Most lenders consider a FICO score above 720 to be A level credit.