Housing & Mortgage Glossary
Need to know a housing or mortgage term? Dealing with your home can be confusing enough. It’s essential to be able to understand the terminology and words related to important housing and mortgage processes, so you can have a better understanding as you move forward in buying a new home, securing a mortgage and getting the most out of your home equity.
If you can’t find what you need or you still have questions, please call us at 1-800-435-2261 to speak with a HUD-approved housing counsellor.
“A” Loan or “A” Paper: A credit rating where your FICO score is equal to or greater than 660. There have been no late mortgage payments within a 12-month period. This is the best credit rating to have when entering into a new loan.
ARM: An acronym for Adjustable Rate Mortgage; a mortgage loan subject to changes in interest rates; when rates change, ARM monthly payments increase or decrease at intervals determined by the lender; the change in monthly payment amount, however, is usually subject to a cap.
Abstract of Title: Documents recording the ownership of property throughout time.
Acceleration: The right of the lender to demand payment on the outstanding balance of a loan.
Acceptance: The written approval of the buyer’s offer by the seller.