ACCRUED INTEREST
The interest earned for the period of time that has elapsed since the date of the borrower's last payment.

ACQUISITION COST
The purchase price and closing costs plus any cost incurred for rehabilitation, renovation, or energy improvements.

ADJUSTABLE RATE MORTGAGES (ARMs)
Home loans with interest rates that change periodically. The basis of this movement in a specified index and margin.

AMORTIZATION
Systematic and continuous repayment of a debt in installments, including principal and interest over a set period of time. At the end of the period the entire debt has been paid.

ANNUAL PERCENTAGE RATE (APR)
The actual rate you will pay, including interest and other finance charges. Because all lenders must follow the same rules to calculate the APR, it is a good way for applicants to compare the overall cost between loan options.

APPRECIATION
An increase in value; the opposite of depreciation.

ASSESSED VALUE
The value a taxing authority places upon real or personal property for the purpose of calculating taxes.

ASSIGN
To transfer a right, title or interest in property to another.

BALLOON PAYMENT
The remaining balance of a home loan that must be paid in a lump sum at the end of a specified time period. The amount may represent slightly more than a monthly payment or it may be a substantial amount.

BIWEEKLY MORTGAGE or BIMONTHLY MORTGAGE
A mortgage agreement in which payments are made every other week instead of monthly. This will reduce the interest paid and often the term of the loan.

BUY-DOWN
Loans with buy-down plans require that a certain amount (usually a percentage) is paid by the buyer or seller to reduce the interest rate over the initial portion of the loan term or for the whole term. Buy-downs can be either temporary or permanent.

CHATTEL
An item of personal property (as opposed to real property).

CLEAR TITLE
Real property against which there are no liens or judgments.

CLOSING
The conclusion of a transaction. In real estate, closing includes the delivery of a deed, delivery of financial disclosures, the signing of notes and the disbursement of funds necessary to consummate the sale. Title is transferred.

CONVERTIBLE MORTGAGE
An adjustable rate mortgage that contains a clause allowing it to be converted to a fixed rate at some time in the future.

CREDIT REPORT
A report giving a person's credit history. It will show delinquent payments, bankruptcies, foreclosures and public records. There are three bureaus reporting credit information.