| acceleration clause | Clause used in an installment note and mortgage, which gives the lender the right to demand payment in full upon the happening of a certain event, such as failure to pay an installment by a certain date, change of ownership without the lender’s consent, destruction of the property, or other event which endangers the security of the loan. |
| ad valorem | Latin for "according to value." Ad valorem taxes are taxes based on the assessed value of real estate or personal property. Property tax paid on owned real estate is a common ad valorem tax. |
| adjustable rate mortgage (ARM) | A mortgage loan or deed of trust which allows the lender to adjust the interest rate in accordance with a specified index periodically and as agreed to at the origination of the loan. Also called variable rate mortgages (VRM). |
| amortization | Payment of a mortgage debt in equal periodic installments of principal and interest. |
| appraisal | An opinion or estimate of value. Also refers to the process by which a value estimate is obtained. |
| appraised value | An opinion of value reached by an appraiser based upon knowledge, experience, and a study of pertinent data. |
| appraiser | One qualified by education, training, and experience to estimate the value of real and personal property. |
| appreciation | Increase in value. |
| assessment | A value factor assigned to real property and used to determine real property taxes. The process of reaching the assessed valuation. Also, an add-on tax to raise money for a special purpose. |
| assignment of lease | A mortgage clause that passes control of leases on an income producing property to the lender. Often a condition to making a loan to ensure that, in case of mortgage default, any continuing income from the property goes directly to the lender. |
| assumption of mortgage | A buyer’s acceptance of primary liability for payment of an existing note secured by a mortgage or deed of trust. The seller remains secondarily liable, unless specifically released by the lender. |
| assumptor | The party taking over an obligation originally incurred by another, as in the assumption of an existing mortgage by the new owner when a property is sold. |