An ACCELERATION CLAUSE in your Mortgage allows the Lender to demand payment of the outstanding loan balance for various reasons (the most common of which is if the Borrower defaults on the loan or transfers title to another individual).
ADJUSTABLE-RATE MORTGAGE (“ARM”) indicates a Mortgage where the interest rate changes periodically according to corresponding fluctuations in a particular Index. All ARMs are tied to Indexes.
Equity represents the Market Value of a particular property less the amount of outstanding secured loans against it.
Homestead refers to your principal residence (i.e., the home in which you live for at least 183 days a year). Homestead property is protected from your Creditors (except that it may be sold to satisfy a Mortgage, HOA/Condo Liens, Mechanic’s Liens or Taxes).
Listing Agreement is the Contract between the Seller and the Realtor/Broker which sets forth the details of their relationship, including the fee to be charged by the Realtor if and when he/she procures a “ready, willing and able” Buyer.
Market Value is the price a Buyer is willing to pay and the price that a Seller is willing to accept. It may differ from the Appraised Value, which is determined by other factors such as comparable properties or the highest/best use of the property.
Mortgage is a loan or lien on a property that has to be paid over a specified period of time.
A Promissory Note offers a written promise by one person (the Payee) to pay a specific sum of money to the other (the Maker).