| A | B |
|---|
| Adjustable Rate Mortgage (ARM) | Morgage in which the interest rate is adjusted based on a standard rate index. |
| Annual Percentage Rate (APR) | A standardized method of calculating the cost of a mortgage, stated as a yearly rate. |
| Fixed-rate Mortgage | A mortgage in which the interest rate does not change. |
| Good Faith Estimate | A written estimate of closing costs that a lender must provide a prospective home buyer within 3 days of submitting a mortgage loan application. |
| Truth-in-Lending | A federal law that requires lenders to disclose, in writing, the terms and conditions of a mortgage. |
| Closing costs | Expenses incurred by buyers and sellers in transferring ownership of a property. |
| Appraisal | A written report by a qualified person estimating the value of a property. |
| Assessed value | The value of a property as determined by a public tax assessor for the purpose of taxation. |
| Broker | An individual or company that brings borrowers and lenders together for the purpose of loan origination. |
| Commission | The fee a broker or real estate agent gets for assisting with a real estate transaction. |
| Earnest money deposit | Money put down by a potential home buyer to show the seller he/she is serious about purchasing the property. |
| Escrow payment | The portion of a homeowner's monthly payment that is held by the loan servicer to pay for taxes and homeowner's insurance. |
