Glossary

Provision in a mortgage that allows the lender to demand payment of the entire principal balance if a monthly payment is missed or some other default occurs.

A way to reduce the remaining balance on the loan by paying more than the scheduled principal amount due.

A mortgage with an interest rate that changes during the life of the loan according to movements in an index rate. Sometimes called AMLs (adjustable mortgage loans) or VRMs (variable-rate mortgages).

The cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken.

The date that the interest rate changes on an adjustable-rate mortgage (ARM).

The period elapsing between adjustment dates for an adjustable-rate mortgage (ARM).