Abstract of Title
A history of ownership of a property and any documentation that affect the title during that ownership.

Acceptance of Sale/Sales Contract
An offer to purchase that has been signed by both the buyer and the seller. A firm contract that outlines all details of the property transaction.

Adjustable Rate Mortgage ("ARM")
A mortgage loan in which the interest rate varies in accordance with a formula specified in the mortgage note which includes use of a specified index and may result in changed monthly payments.

Amortization
The paying off of a debt such as a mortgage in periodic installments for the term of the loan.

Annual Percentage Rate ("APR")
Actual cost of credit to the borrower, including interest and certain other charges, expressed as a yearly rate and calculated over the life of the loan.

Appraisal
A written analysis of the estimated value of your property. It insures you are paying a fair market value for your home and is required to close on your new home or property.

Appraisal Fee
A fee generally paid by the buyer to determine the estimated value of the property.

Appreciation
The increase in value of a home.

Assessments
Local improvements on a property for sewer or water generally paid in full on all cash or new loan transactions.

Balloon Mortgage
A mortgage with periodic installments of principal and interest that do not fully amortize the loan. The balance of the mortgage is due in a lump sum at a specified date, usually at the end of the term.

Billing Cycle
The period or number of days shown on a billing statement in which interest is billed.

Bi-Weekly Mortgage
A mortgage with payments due every two weeks, totaling 26 payments per year.

Bond Program
A state sponsored method of assisting borrowers and first-time buyers in the purchase of a home at a reduced interest rate.

Broker
A person who has a real estate broker's license, who may not only make real estate transactions for others in exchange for a fee, but also may operate a real estate business and employ sales associates and other brokers.

Buy Down
A method of lowering the interest rate on a mortgage, either temporarily or for the entire term of the loan. Often points are paid up front to make up the difference between the rate actually charged on the mortgage and the rate at which the buyer pays.