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Glossary of Terms, A-B
- Additional services
- These are services such as packing, appliance servicing,
unpacking, or stair carries that you request or need and
may result in additional charges.
- Advanced charges
- These are charges for services performed by a third party
at your request. These charges are paid for by the mover
and added to your total charges.
- Adjacent
- Near or next to but not necessarily touching.
- Adjoining
- Actually touching that which it is next to; abutting.
- Adjustable-rate mortgage (ARM)
- A mortgage whose interest rate is adjusted periodically
corresponding with changes in a specified index.
- Affordability analysis
- A calculation of an amount that a person can borrow to
purchase a home. An affordability analysis takes into consideration
your income, expenses, and available funds, along with the
type of mortgage you plan to use, and the closing costs
you might expect to pay.
- Agent
- A licensed representative given power to act on behalf
of another, who provides information, advice, and assessment
of current market conditions.
- Amortization schedule
- A timetable of periodic payments of a mortgage loan. The
amortization schedule shows the how each payment is allocated
between interest and principal and shows the remaining balance
after each payment is made.
- Amortization term
- The amount of time required to fully repay the mortgage
loan expressed as a number of months. For example, for a
30-year fixed-rate mortgage, the amortization term is 360
months.
- Application
- A form used to apply for a mortgage loan. The application
records financial information of a prospective mortgagor.
- Appreciation
- An increase in the value of a property (the opposite is
depreciation). Property can appreciate due to a number of
reasons including changes in economic conditions.
- Asking price
- The price at which the owner wishes to sell a property.
- Asset
- Anything of monetary value that is owned by a person.
Assets include real property, personal property, and enforceable
claims against others (including bank accounts, stocks,
mutual funds, and so on).
- Attorney-in-fact
- An individual with the ability to execute documents on
behalf of another as a result of a power of attorney.
- Balance sheet
- A financial statement for a business that shows assets,
liabilities, and net worth as of a specific date.
- Balloon mortgage
- A loan which is amortized for a longer period than the
term of the loan. Usually this refers to a thirty-year amortization
and a five-year term. At the end of the term of the loan,
the remaining outstanding principal on the loan is due.
This final payment is known as a "balloon payment."
- Bankruptcy
- A proceeding in a federal court in which a debtor is relieved
from the responsibility of all debts after transferring
all assets to a trustee.
- Bill of lading
- Your bill of lading is the contract between you and the
mover. It is also your receipt. It is important to understand
everything on the bill of lading before you sign it.
- Binder
- A preliminary agreement, secured by a cash deposit, under
which a buyer offers to purchase real estate. See earnest
money deposit.
- Binding estimate
- A flat price based upon a given inventory. No matter how
long the job takes, the flat price is always paid.
- Broker
- A person who, for a commission or a fee, brings parties
together and assists in negotiating contracts between them.
See mortgage broker.
- Budget
- A detailed list of anticipated income and expenses. A
budget can provide guidelines for managing future investments
and expenses.
- Buydown
- When the home builder (or seller) subsidizes the mortgage
by lowering the interest rate during the first few years
of a loan. Payments will increase when the subsidy expires.
This process allows a buyer to qualify for a larger loan
with the expectation of future income increases to enable
the borrower to afford the increased payments.
- Buyer's agent
- An agent that represents the buyer in the real estate
transaction.
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