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Adjustable rate mortgages (ARMs)
Interest rate varies periodically depending on the determination of the company who is managing your loan. Before consenting to an adjustable rate mortgage, be sure you know when the lender has the right to change the rate, or if there are any limits on how much interest will be charged, or if your payments will change or how frequently the rate can be changed.

Amortization
The term used to indicate an equal periodic payment calculated to pay off a debt at the end of a fixed period. Accrued interest on the outstanding balance is included in that payment.

Amortized loan
Requires you to make monthly payments on the principal and interest. At the end of the loan term, your debt will also be paid off.

Amortization Term
The time required to amortize a mortgage loan expressed as months (i.e. 360 months is the amortization term for a 30-year fixed-rate mortgage).

Annual percentage rate (A.P.R.)
Expressed as a yearly percentage rate. It is a measurement of the full cost of a loan which includes both interest & loan fees. A good basis for comparing loan costs since all lenders apply the same rules in calculating the APR.

Appraisal
An estimate of the value of property made by a qualified professional called an "appraiser".

Appraised Value
Based on an appraiser's knowledge, experience, & property analysis, an "appraised value" of a property's fair market value is made.