Page 75 - The Latest Homebuying Guide

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Keywords To Know

Adjustment Date
This is the date your mortgage begins to grow interest, usually the
first day of the month after your funds were disbursed from the
lender.

Adjustable Rate Mortgage
Mortgage where the interest rate changes over the life of the loan.
Your monthly payment will start low and then increases later.

Amortization
The process of combining principal and interest in one payment
over the life of a loan.

Appraisal
Done by the lender to make sure the house is worth the amount
you want to borrow. This cost will be included in your closing
disclosure. Also done by the seller to see what the property is worth.

Appraisal Contingency
A clause in a contract that must allow an appraisal to be done before
closing on a house.

Assessed Value
How much your home is worth, according to your city, county or
state government. This is used to determine property taxes.

Balloon Payment
A large payment that is required usually at the end of the loan.

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