GayRealEstate USA

Dictionary of Terms - A - Application

By Jeff Adolph

Real Estate Dictionary

A

Application

An application is a form that is filled out when applying for a mortgage.

This form usually contains as much detail as possible about the borrower and will include any income that they make weekly, monthly, or annually, as well as the amount they have in their savings account and any other assets or debts that they have.

Apart from financial details your mortgage application form may also list your martial status, the number of dependants you have and any other details that define who you are, such as your date of birth, and drivers license and social security number.

You will be required to sign this application form and this will then grant the lender authority to carry out any back ground checks on you, such as your credit history and any other financial details, before the grant you loan approval.

------------------------------------------------------------------

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

-----------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

By Jeff Adolph

Real Estate Dictionary

A

Application

An application is a form that is filled out when applying for a mortgage.

This form usually contains as much detail as possible about the borrower and will include any income that they make weekly, monthly, or annually, as well as the amount they have in their savings account and any other assets or debts that they have.

Apart from financial details your mortgage application form may also list your martial status, the number of dependants you have and any other details that define who you are, such as your date of birth, and drivers license and social security number.

You will be required to sign this application form and this will then grant the lender authority to carry out any back ground checks on you, such as your credit history and any other financial details, before the grant you loan approval.

------------------------------------------------------------------

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

-----------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

By Jeff Adolph

Real Estate Dictionary

A

Application

An application is a form that is filled out when applying for a mortgage.

This form usually contains as much detail as possible about the borrower and will include any income that they make weekly, monthly, or annually, as well as the amount they have in their savings account and any other assets or debts that they have.

Apart from financial details your mortgage application form may also list your martial status, the number of dependants you have and any other details that define who you are, such as your date of birth, and drivers license and social security number.

You will be required to sign this application form and this will then grant the lender authority to carry out any back ground checks on you, such as your credit history and any other financial details, before the grant you loan approval.

------------------------------------------------------------------

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

-----------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

By Jeff Adolph

Real Estate Dictionary

A

Application

An application is a form that is filled out when applying for a mortgage.

This form usually contains as much detail as possible about the borrower and will include any income that they make weekly, monthly, or annually, as well as the amount they have in their savings account and any other assets or debts that they have.

Apart from financial details your mortgage application form may also list your martial status, the number of dependants you have and any other details that define who you are, such as your date of birth, and drivers license and social security number.

You will be required to sign this application form and this will then grant the lender authority to carry out any back ground checks on you, such as your credit history and any other financial details, before the grant you loan approval.

------------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

Real Estate Dictionary of Terms - A - Annual Percentage Rate

By JeffAdolph

Real Estate Dictionary

A

Annual Percentage Rate

The annual percentage rate (APR) is not the noted rate on your mortgage, but the value the government creates in order to calculate the true cost of borrowing, annually. This rate is offered as a percentage.

The government basically calculate the annual percentage rate by deducting the closing costs from your actual loan. They then use the loan repayment amount that you pay to calculate the actual true cost of your loan.

The APR is higher than your actual loan interest rate because your repayment amount remains the same, but it is applied to a smaller borrowed amount.

-----------------------------------------------------------------

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

-----------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

By JeffAdolph

Real Estate Dictionary

A

Annual Percentage Rate

The annual percentage rate (APR) is not the noted rate on your mortgage, but the value the government creates in order to calculate the true cost of borrowing, annually. This rate is offered as a percentage.

The government basically calculate the annual percentage rate by deducting the closing costs from your actual loan. They then use the loan repayment amount that you pay to calculate the actual true cost of your loan.

The APR is higher than your actual loan interest rate because your repayment amount remains the same, but it is applied to a smaller borrowed amount.

-----------------------------------------------------------------

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

-----------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

By JeffAdolph

Real Estate Dictionary

A

Annual Percentage Rate

The annual percentage rate (APR) is not the noted rate on your mortgage, but the value the government creates in order to calculate the true cost of borrowing, annually. This rate is offered as a percentage.

The government basically calculate the annual percentage rate by deducting the closing costs from your actual loan. They then use the loan repayment amount that you pay to calculate the actual true cost of your loan.

The APR is higher than your actual loan interest rate because your repayment amount remains the same, but it is applied to a smaller borrowed amount.

-----------------------------------------------------------------

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

-----------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

By JeffAdolph

Real Estate Dictionary

A

Annual Percentage Rate

The annual percentage rate (APR) is not the noted rate on your mortgage, but the value the government creates in order to calculate the true cost of borrowing, annually. This rate is offered as a percentage.

The government basically calculate the annual percentage rate by deducting the closing costs from your actual loan. They then use the loan repayment amount that you pay to calculate the actual true cost of your loan.

The APR is higher than your actual loan interest rate because your repayment amount remains the same, but it is applied to a smaller borrowed amount.

-----------------------------------------------------------------

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

-----------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

By JeffAdolph

Real Estate Dictionary

A

Annual Percentage Rate

The annual percentage rate (APR) is not the noted rate on your mortgage, but the value the government creates in order to calculate the true cost of borrowing, annually. This rate is offered as a percentage.

The government basically calculate the annual percentage rate by deducting the closing costs from your actual loan. They then use the loan repayment amount that you pay to calculate the actual true cost of your loan.

The APR is higher than your actual loan interest rate because your repayment amount remains the same, but it is applied to a smaller borrowed amount.

-----------------------------------------------------------------

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

-----------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

By JeffAdolph

Real Estate Dictionary

A

Annual Percentage Rate

The annual percentage rate (APR) is not the noted rate on your mortgage, but the value the government creates in order to calculate the true cost of borrowing, annually. This rate is offered as a percentage.

The government basically calculate the annual percentage rate by deducting the closing costs from your actual loan. They then use the loan repayment amount that you pay to calculate the actual true cost of your loan.

The APR is higher than your actual loan interest rate because your repayment amount remains the same, but it is applied to a smaller borrowed amount.

-----------------------------------------------------------------

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

-----------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

-----------------------------------------------------------------

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

-----------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

Dictionary of Real Estate Terms - A - Amortization

By Jeff Adolph

Dictionary of Terms

A

Amortization

Amortization refers to the pay-out of a mortgage over the allocated time-frame of the loan.

Let me explain...

When you take out a mortgage it is taken out over a specific number of years, such as a 30 year term. And, a mortgage consists of two parts, an interest payment and a principal repayment. When you first begin repaying your mortgage your interest payment is far greater than your principal repayment. However, as the principal of your mortgage decreases so to does the amount you will repay in interest, and over time your interest repayment will be far less than your principal repayment, so that you pay the loan off in the number of years allocated.

 

The day that you pay off your mortgage is the day that your loan has been amortized.

Image Source: Microsoft Clipart

------------------------------------------------------------------

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

-----------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

By Jeff Adolph

Dictionary of Terms

A

Amortization

Amortization refers to the pay-out of a mortgage over the allocated time-frame of the loan.

Let me explain...

When you take out a mortgage it is taken out over a specific number of years, such as a 30 year term. And, a mortgage consists of two parts, an interest payment and a principal repayment. When you first begin repaying your mortgage your interest payment is far greater than your principal repayment. However, as the principal of your mortgage decreases so to does the amount you will repay in interest, and over time your interest repayment will be far less than your principal repayment, so that you pay the loan off in the number of years allocated.

 

The day that you pay off your mortgage is the day that your loan has been amortized.

Image Source: Microsoft Clipart

------------------------------------------------------------------

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

-----------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

Dictionary of Terms

A

Amortization

Amortization refers to the pay-out of a mortgage over the allocated time-frame of the loan.

Let me explain...

Amortization refers to the pay-out of a mortgage over the allocated time-frame of the loan.

Let me explain...

Image Source: Microsoft Clipart

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

Dictionary of Real Estate Terms - A - Adjustment Date

By Jeff Adolph

Dictionary of Terms

A

Adjustment Date

The Adjustment date, is the day and month that an interest rate changes on an adjustable rate mortgage, or ARM.

Let's say that you had a mortgage for $250,000 and your current interest rate on this mortgage was 5.33%. However, on the 16th of August your lender changes the rate to 5.43%, and then notifies you of this change by placing this new rate on your mortgage statement. This then means that the date your interest rate rose on, is your adjustment date, which in our example is the 16th of August.

You may have several adjustment dates over the life of your mortgage, or you may have many, and hopefully your adjustable rates will decrease rather than increase as this makes you that much happier.

Image Source: Microsoft Clipart

-----------------------------------------------------------------

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

-----------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

 

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

-----------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

The Gay Real Estate Dictionary of Terms -- A -- Adjustable Rate Mortgage

By Jeff Adolph

Dictionary of Terms

A

Adjustable Rate Mortgage

An adjustable rate mortgage, also known as an ARM, is a home loan that has an interest rate which will change periodically based on indices.

The indices used to calculate an ARM are typically the Cost of Funds Index, or COFI, and the London Interbank Offered Rate, or LIBOR. However, some lenders use their own index as a measurement of rates.

The adjustment in interest rates on a loan is used so that the lender can make a profit from lending, and this means that as economies and other influencing factors change so to will interest rates.

For a home owner with an ARM this means that they may pay more, or less, in any given month, over the term of their loan, depending on how the lending market fluctuates.

Image Source: Microsoft Clipart

-----------------------------------------------------------------

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

-----------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

 

By Jeff Adolph

Dictionary of Terms

A

Adjustable Rate Mortgage

An adjustable rate mortgage, also known as an ARM, is a home loan that has an interest rate which will change periodically based on indices.

The indices used to calculate an ARM are typically the Cost of Funds Index, or COFI, and the London Interbank Offered Rate, or LIBOR. However, some lenders use their own index as a measurement of rates.

The adjustment in interest rates on a loan is used so that the lender can make a profit from lending, and this means that as economies and other influencing factors change so to will interest rates.

For a home owner with an ARM this means that they may pay more, or less, in any given month, over the term of their loan, depending on how the lending market fluctuates.

Image Source: Microsoft Clipart

-----------------------------------------------------------------

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

-----------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

 

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

-----------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

The Gay Real Estate Dictionary of Terms -- A -- Acceleration Clause

By Jeff Adolph

Dictionary of Real Estate Terms

A

ACCELERATION CLAUSE

A clause in a mortgage that allows the mortgagor or  lender to request any outstanding loan balance be paid. This is usually attributed to the fact that a mortgagee or borrower has defaulted in payment of the loan or has transferred the title of the property to another party, without notifying the mortgagor.

A typical acceleration clause reads as follows:

'In the event of default in the payment of any of the said installments or said interest when due as herein provided, time being of the essence hereof, the holder of this note may, without notice or demand, declare the entire principal sum then unpaid immediately due and payable.'

If an acceleration clause is put into affect often any monies paid by the borrower are considered null and void, and not refundable. For example - a buyer borrows $100,000 for a block of land and he agreed to pay 40 monthly installments of $2,500 to pay back the cost of the property, excluding interest. The buyer pays back 20 of these installments and then defaults on the next two payments. The lender then puts the acceleration clause into affect and forces the buyer to pay back all of the outstanding loan amount, being $50,000. The buyer cannot repay this sum, the lender is then able to keep the $50,000 that the lender has already paid, and the buyer relinquishes his rights to the block.

Please note - the above example does not include any interest repayments so that it remains simplified.

Image Source: Microsoft Clipart

------------------------------------------------------------------

*RealQuestions RealAnswers*

Click on Comments below and share your thoughts and opinions, ask a real estate question or offer story suggestions...

-----------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By:

Image Source: Microsoft Clipart

------------------------------------------------------------------

© 2006+ Jeff Adolph GayRealEstate USA

Proudly Sponsored By: