Payment Adjustment Period The time period where payments on an adjustable-rate mortgage (ARM) may fluctuate. Payment Cap A contractual limitation on the amount of the monthly payment of an adjustable-rate mortgage or other variable rate loan. Penalty In mortgage terms, a penalty is a set rate or length of time the penalty will be charged based on the remaining loan amount. The penalty is … [Read more...]

One-year Adjustable A mortgage where the annual rate changes from year to year. The rate is based on movements of a published index plus a specified margin, selected by the lender. Open-end Lease A type of lease that offers lowers payments, but more risk to the lessee because he or she must pay the difference between the residual value of the automobile as stated in the lease and the fair … [Read more...]

Net Cash Flow Incremental after-tax income plus depreciation expense resulting from investment. Net Income The difference between effective gross income and a person's expenses. The term is qualified as net income before depreciation and debt. Net proceeds from the sale Residual amount deriving from the sale of an immovable once all selling expenses have been deducted, i.e. mortgage loan … [Read more...]

Maintenance Fee A periodic assessment or charge that residents pay to their homeowner's or condo association to pay for the maintenance and repairs of common areas. Market Conditions Factors that can affect the sale of homes in a certain area. Such factors include interest rates, the unemployment rate, home appreciation, weather, time of year, etc. Market Value The highest price in terms … [Read more...]