Agreement of Purchase and Sale:
A written document where the Buyer agrees to purchase real estate and the Owner agrees to sell under certain terms and conditions.
Amortization:
Repayment of a loan in equal installments of principal and interest, rather than interest only payments.
Amortization period:
The actual number of years it will take to repay a mortgage in full. This period can
be longer than the loan’s term. For example, a mortgage may have a five-year term and a 25-year
amortization period.
Appraised value:
An estimate of the market value of the home and property that the borrower pledges as
security for the mortgage. This value may be more or less than the purchase price of the property.
Assets:
The items of value that you own, such as your home, car or summer home.
Assumption of Mortgage:
A Buyer’s agreement to assume the liability under an existing note which is secured by a mortgage. The lender usually must approve the Buyer in order to release original borrower (usually the seller) from liability)