Adjustable Rate Mortgages
Mortgage loans under which the interest rate is periodically adjusted to more closely coincide with current rates. The amounts and times of adjustment are agreed to at the inception of the loan.
Administrator
The individual or institution appointed by a court to oversee the settlement of the estate of a person who has died without a will.
Agreement for Sale
A document in which the purchaser agrees to buy certain real estate (or personal property) and the seller agrees to sell under stated terms and conditions. Also called sales contact, binder or earnest money contract.
Amortization
Payment of debt in regular, periodic installments of principal and interest as opposed to interest only payments.
Amortize
To reduce a debt by regular payments of both principal and interest, as opposed to interest only payments.
Annual Exclusion
The amount of money or property (currently $10,000 for an individual and $20,000 for a married couple) that may be given as a gift to a recipient each year without incurring a gift tax. The amount will be indexed for inflation after 1998.
Annual Percentage Rate (APR)
The yearly interest percentage of a loan, as expressed by the actual rate of interest paid. For example, 6% add-on interest would be much more than 6% simple interest, even though both would say 6%. The APR is disclosed as a requirement of federal truth in lending statutes.
Annuity
An interest-bearing contract between an individual and a life insurance company that guarantees periodic payments to the indivdual during a specific time period.
Appraisal
An opinion of value based upon a factual analysis. Legally, an estimation of value by two disinterested persons of suitable qualifications.
Appraisal Report
A written report by an appraiser containing his opinion as to the value of a property and the reasoning leading to the opinion. The factual data supporting the opinion, such as comparables, appraisal formulas, and qualifications of the appraiser, will also be set forth.
Appraised Value
An opinion of the value of a property at a given time, based on facts regarding the location, improvements, etc. of the property and surroundings.
Appreciation
An increase in value, the opposite of depreciation.
Assessment
(1) The estimating of value of property for tax purposes.
(2) A levy against property in addition to general taxes. Usually for improvements such as streets, sewers, etc.
