An addendum is a separate document that becomes part of the Purchase and Sales Agreement. It is used when something needs to be added, clarified, or changed after the main contract has already been written. Once everyone signs the addendum, it becomes legally binding just like the rest of the contract. It does not sit […]

Amortization is the process of paying off a loan through a series of regular monthly payments over time. Each payment is made up of two parts: one part goes toward the interest the lender charges, and the other part goes toward reducing the actual loan balance, which is called the principal. The balance gets smaller […]

An appraisal is an independent, professional opinion of a property’s value. It is completed by a licensed appraiser who examines the home, studies recent sales in the area, and applies established valuation methods to determine what the property is worth in the current market. While standardized techniques are used, appraisal is still subjective, and three […]

An appraisal waiver is when a lender’s automated underwriting system determines that a traditional appraisal is not required because the property’s value can be supported using existing market data. Instead of sending a licensed appraiser to inspect the home, the lender accepts a data‑driven valuation model. Fannie Mae’s modern term for an appraisal waiver is […]

APR stands for Annual Percentage Rate – the yearly cost-of-credit figure that folds in the interest rate plus certain lender fees and financing costs. Because every lender is required to calculate it the same way, APR gives you a more apples-to-apples way to compare loan offers than the interest rate alone.  APR is meant to […]

Adjustable-Rate Mortgage (ARM) An adjustable-rate mortgage, or ARM, is a home loan where the interest rate can change over time. ARMs begin with a fixed introductory period, such as 3, 5, 7, or 10 years, during which the interest rate does not move. After that period ends, the rate adjusts at regular intervals based on […]