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Adjustable Rate Mortgage (ARM): A mortgage in which the interest rate is adjusted periodically based on a pre-selected index.  Some of the indexes used include: Prime, LIBOR, 12 MTA, 11th District (COFI).

ALTA: American Land Title Association.  Typically used in reference to a specific title policy.

Amortization: The paying off of a debt through periodic installments which pay both principal and interest.

Amortization Schedule: A timetable giving the details of the amount of principal and interest paid with every mortgage payment as well as updating the balance of the loan.

Annual Percentage Rate (APR): The effective rate of interest for a mortgage loan per year.  This rate is usually higher than the note rate because into consideration closing costs and points associated with the loan.

Application: The initial statement of the borrower’s personal and financial information which is used in the pre-approval process.

Appraisal: An estimate of the value of a property by a qualified professional on a specific date.

Appreciation: The increase in value of real estate due to market or other conditions.

Assumable Mortgage: A mortgage loan which gives the mortgagee the option to transfer the mortgage to a new qualified buyer without changing any terms of the existing mortgage.  Sometimes there is an assumption fee and the lender must be notified and agree to the assumption.

Assumption: The transfer of the existing mortgage from the seller to the buyer.

Attachment: A legal process that allows a creditor to obtain a lien against the debtor’s property.

Attorney In Fact: A person who is authorized to act and sign, on a limited or general basis, for another individual as indicated through a power of attorney.