When you start shopping for a new home, you may encounter some words and terms with which you are unfamiliar. The following glossary will help you to be a better informed shopper. Adjustable Rate Mortgage (ARM) - A loan whose interest rate is adjusted according to movements in the financial market. Amortization - A payment plan by which a borrower reduces a debt gradually through monthly payments of principal and interest. Annual Percentage Rate (APR) - The annual cost off credit over the life of a loan, including interest, service charges, points, loan fees, mortgage insurance, and other items. Appraisal - An evaluation to determine what a piece of property would sell for in the marketplace. Appreciation - The increase in the value of a property. Assessment - A tax levied on a property or a value placed on the worth of property by a taxing authority. Assumption - A transaction allowing the buyer of a home to assume responsibility for an existing loan on the home instead of getting a new loan. ABOUT THE AUTHOR
Mark Mathis is a building designer and publisher of several stock house plan websites and informational resources including http://www.HousePlanCentral.com, http://www.HousePlanGallery.com, and http://www.moneytalks-bswalks.com. Be sure to visit each site and subscribe to our eNewsletters to receive special offers, promotions, and subscriber-only features.