11th
District Cost of Funds - A monthly cost-of-funds index (COFI)
reflecting the weighted-average interest rate paid by 11th Federal Home Loan
Bank District savings institutions for savings and checking accounts. The 11th
district covers Arizona, California
and Nevada.
The index is published on the last day of the month and reflects the cost of
funds for the prior month.
Acceleration clause - The clause in a mortgage or trust deed that stipulates the entire debt is due immediately if the mortgagee defaults under the terms of the contract.
Acquisition cost - Under an FHA loan, the purchase price or appraised value of the property plus the estimated closing costs.
Adjustable Rate Mortgage (ARM) - A mortgage in which the interest rate is adjusted periodically based on an index. Also called a variable rate mortgage.
Adjustment date - The date the interest rate changes on an ARM (adjustable rate mortgage).
Adjustment Interval - For an adjustable rate mortgage, the time between changes in the interest rate charged. The most common adjustment intervals are one, three or five years.
Adjusted book basis - The purchase price of a property plus any capital improvements less accrued depreciation, if any, to the date of the sale.
Amortization - Literally to "kill off" (root: mort) the outstanding balance of a loan by making equal payments on a regular schedule (usually monthly). The payments are structured so that the borrower pays both interest and principal with each equal payment.
Annual Percentage Rate (APR) - A figure that states the total yearly cost of a mortgage as expressed by the actual rate of interest paid. The APR includes the base interest rate, points, and any other add-on loan fees and costs. As a result the APR is invariably higher for the rate of interest that the lender quotes for the mortgage but gives a more accurate picture of the likely cost of the loan. Keep in mind, however, that most mortgages are not held for their full 15 or 30 year terms, so the effective annual percentage rate is higher than the quoted APR because the points and loan fees are spread out over fewer years.
Annuity - A series of income payments of receipts over a period of years.
Application - A mortgage application requires borrowers to submit information regarding their income, savings, assets, debts, and more.
Application Fee - The fee charged by the lender to the borrower for applying for a loan. Payment of this fee does not guarantee that a loan will be approved. Some lenders may apply the cost of the application fee to certain closing costs.
Appraisal - The determination of property valu | 
