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Mortgage Loan Glossary

This mortgage glossary will give you definitions of many important mortgage terms used in the mortgage industry.

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Accelerated mortgage loan payments

Accelerated mortgage loan payments are payments that you use to pay off more of your home mortgage loan per year than you would with normal monthly mortgage loan payments.

Adjustable rate mortgage loan

A type of mortgage loan that has a rate that goes up and down along with the economy's prime rate. So at one point while you have an adjustable rate mortgage loan, your rate could be 4.75% for example, and at another point it could go down to 4%. The adjustable rate mortgage loan is the opposite of the fixed rate mortgage loan.

Amortization

Amortization is the length of time you get to pay off your mortgage loan. For example, if you had a 25 year amortization, you would have 25 years to completely pay off your mortgage loan. Amortizations are usually anywhere from 5 years long to 25 years long.

Application

An application is a form you use to apply for a home or commercial mortgage loan through a mortgage loan brokerage. Mortgage loan applications usually ask you basic questions like how much mortgage-money you want, and what your income is. This is so the mortgage loan brokers receiving your application can let you know if you prequalify for your mortgage loan simply by looking at your application info.

ARM

"ARM" is the acronym for the type of mortgage loan called an "adjustable rate mortgage." See adjustable rate mortgage loan.

Assumable mortgage loan

A type of mortgage loan that you can let someone else take over if they buy your home or multi-residential real estate from you. When you have an assumable mortgage loan, you can get rid of it without paying it out. And, when a person takes over an assumable mortgage loan from you, you'll get all of the mortgage loan principal amount (the amount of money you borrowed) that you paid off, back - in cash!