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Adjustable Rate Mortgage(ARM) - A mortgage where the interest rate is not fixed, but changes during the life of the loan in line with movements in an index rate. Adverse Mortgage - Also referred to as Bad or poor credit mortgages. For those with a poor credit history, CCJ's, defaults on loan payments etc. Agent - Agent The person who is acting on behalf of the principal or client. Amortization - The reduction of a debt by regular, usually monthly, instalments of principal and interest. Application - The method by which a mortgage is applied for. The initial statement of personal and financial information which is required to approve your loan Application Fee - A Fee that is paid upon mortgage application. Appraisal - A fee charged by an appraiser to render an opinion of market value as of a specific date. Appraised Value - An estimate of the market value of the home and property that the borrower pledges as security for the mortgage. Assets - The things of value that you own, such as your home, car or summer home. Borrower - A person who has been approved to receive a loan and is then obligated to repay it and any additional fees according to the loan terms. Bridging Finance - A short term loan meant to bridge a financing gap, such as when you may face a delay receiving an agreed mortgage and you may need to pay the deposit on a property to secure it. Broker - The person who brings both borrower and Lender parties together and assists in negotiating contracts between them. Cap - The maximum allowable increase, for either payment or interest rate, for a specified amount of time on an adjustable rate mortgage. Commercial Mortgage - A mortgage specifically for commercial properties such as shops, factories, pubs, restaurants etc.


Credit Report - A report outlining an individuals credit history, public records and credit worthiness. A history of an individuals ability to pay their bills on time as well as any other relevant public records. Default - The failure of a borrower to comply with the terms of a mortgage. Deposit - A sum of cash that must be paid to the vendor by the purchaser. Equity - The difference between the fair market value (appraised value) of your home and your outstanding mortgage balance. Fixed Rate Mortgage - A mortgage loan with an interest rate that does not change during the entire loan term. Foreclosure - The legal process by which property that is mortgaged as security for a loan may be sold to pay a defaulting borrower's loan. Interest Rate - A charge for a loan usually a percentage of the amount loaned. Lender - An individual or company that offers to lend money for an agreed period of time. Loan - Money borrowed that is usually repaid with interest. Loan To Value (LTV) - A ratio determined by dividing the sales price or appraised value into the loan amount, expressed as a percentage. Mortgage - A legal document that pledges property to a lender as security for the repayment of the loan. Principal - The amount of the loan on which interest is calculated. Rate (interest) - The annual percentage amount charged in return for borrowing funds. Refinance or Refinancing - When an existing mortgage is replaced by a new mortgage. Repayment Mortgage - You pay interest and part of the capital each month to pay off your mortgage completely at the end of the mortgage term. Security - Property, or assets, offered as backing for a loan.

Looking for a low rate commercial mortgage? Commercial mortgage brokers Commercial Lifeline can help you to save on your commercial mortgage by explaining your commercial finance options. This article comes with reprint rights. Feel free to reprint and distribute as you like. All that we ask


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A Simple Glossary of Mortgage Terms