Glossary of Terms, A-B

Additional services
These are services such as packing, appliance servicing, unpacking, or stair carries that you request or need and may result in additional charges.
Advanced charges
These are charges for services performed by a third party at your request. These charges are paid for by the mover and added to your total charges.
Near or next to but not necessarily touching.
Actually touching that which it is next to; abutting.
Adjustable-rate mortgage (ARM)
A mortgage whose interest rate is adjusted periodically corresponding with changes in a specified index.
Affordability analysis
A calculation of an amount that a person can borrow to purchase a home. An affordability analysis takes into consideration your income, expenses, and available funds, along with the type of mortgage you plan to use, and the closing costs you might expect to pay.
A licensed representative given power to act on behalf of another, who provides information, advice, and assessment of current market conditions.
Amortization schedule
A timetable of periodic payments of a mortgage loan. The amortization schedule shows the how each payment is allocated between interest and principal and shows the remaining balance after each payment is made.
Amortization term
The amount of time required to fully repay the mortgage loan expressed as a number of months. For example, for a 30-year fixed-rate mortgage, the amortization term is 360 months.
A form used to apply for a mortgage loan. The application records financial information of a prospective mortgagor.
An increase in the value of a property (the opposite is depreciation). Property can appreciate due to a number of reasons including changes in economic conditions.
Asking price
The price at which the owner wishes to sell a property.
Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds, and so on).
An individual with the ability to execute documents on behalf of another as a result of a power of attorney.
Balance sheet
A financial statement for a business that shows assets, liabilities, and net worth as of a specific date.
Balloon mortgage
A loan which is amortized for a longer period than the term of the loan. Usually this refers to a thirty-year amortization and a five-year term. At the end of the term of the loan, the remaining outstanding principal on the loan is due. This final payment is known as a "balloon payment."
A proceeding in a federal court in which a debtor is relieved from the responsibility of all debts after transferring all assets to a trustee.
Bill of lading
Your bill of lading is the contract between you and the mover. It is also your receipt. It is important to understand everything on the bill of lading before you sign it.
A preliminary agreement, secured by a cash deposit, under which a buyer offers to purchase real estate. See earnest money deposit.
Binding estimate
A flat price based upon a given inventory. No matter how long the job takes, the flat price is always paid.
A person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them. See mortgage broker.
A detailed list of anticipated income and expenses. A budget can provide guidelines for managing future investments and expenses.
When the home builder (or seller) subsidizes the mortgage by lowering the interest rate during the first few years of a loan. Payments will increase when the subsidy expires. This process allows a buyer to qualify for a larger loan with the expectation of future income increases to enable the borrower to afford the increased payments.
Buyer's agent
An agent that represents the buyer in the real estate transaction.