| Term | Definition |
|---|
| agent | A person authorized to act for and under the direction of another person when dealing with third parties. The person who appoints an agent is called the principal. An agent can enter into binding agreements on the principal's behalf and may even create liability for the principal if the agent causes harm while carrying out his or her duties. See also attorney-in-fact. |
| alienation Clause | A clause in a mortgage, which gives the lender the right to call the entire loan balance due if the property is sold; due-on-sale clause. |
| amenities | Non monetary benefits and satisfactions derived from property ownership, such as a pleasant view, pride in home ownership, etc. |
| ammendment | A modification to an existing contract, mutually agreed to by all parties. Examples might include a change in the pruchase price due to a low appraisal, or a change in the closing date. |
| amortization | The operation of paying off indebtedness, such as a mortgage, by installments. The conventional amortization periods are15 or 30 years. (See term) |
| amortized mortgage | A mortgage requiring periodic payments that include both interest and principal. Also see self amortized loan. |
| annual membership | The amount that is charged annually for having a line of credit available. Often charged regardless of whether or not you use the line. |
| antitrust laws | Federal and state laws prohibiting, among other things, monopolies, monopolistic practices, restraint of trade, and price fixing. |
| application | An initial statement of personal and financial information, which is required to approve your loan. |
| application fee | Fees that are paid upon application. Charges for property appraisal and a credit report are usually included in the application fee. |
