|
|
|
401(k)/403(b)
An employer-sponsored investment plan that allows individuals to set aside tax-deferred income for retirement or emergency purposes. 401(k) plans are provided by employers that are private corporations. 403(b) plans are provided by employers that are not for profit organizations.
|
|
401(k)/403(b) loan
Some administrators of 401(k)/403(b) plans allow for loans against the monies you have accumulated in these plans -- monies must be repaid to avoid serious penalty charges.
|
|
80-10-10
A type of blended mortgage loan which avoids private mortgage insurance (PMI). It consists of an 80% - 30 year first lien at market rates, a 10% - 15 year second lien at a slightly higher interest rate, and a 10% down payment. Instead of having to come up with a 20% down payment, a buyer is able to avoid PMI with only 10% down. While the interest rate on the second note is a bit higher, the total monthly payment is usually lower than a 90% mortgage with PMI. In addition, the extra interest paid for the second lien is tax deductable, whereas PMI is not. It is also possible to payoff just the second lien, thereby lowering the future monthly payments. Some lenders also offer 75-15-10 and 80-15-5 programs. This type of mortgage also gives the consumer the option of having a non-escrowing loan without a 20% downpayment.
|
|
abstract of title
A condensed version of the history of title to a piece of land that lists any transfers in ownership, as well as any liabilities attached to it, such as mortgages.
|
|
abutting
The joining, reaching, or touching of adjoining land. Abutting pieces of land have a common boundary.
|
|
acceleration clause
A provision in a mortgage that gives the lender the right to demand payment of the entire principal balance if a monthly payment is missed.
|
|
acceptance
An offeree's consent to enter into a contract and be bound by the terms of the offer.
|
|
accretion
An addition to land through natural causes.
|
|
acknowledgment
A declaration made by a person to a notary public, or other public official authorized to take acknowledgments, that the instrument was executed by him and that it was his free and voluntary act.
|
|
acre
A measure of land equal to 43,560 square feet.
|
|
ad valorem
Designates an assessment of taxes against property. Literally, according to value.
|
|
additional principal payment
A payment by a borrower of more than the scheduled principal amount due in order to reduce the remaining balance on the loan.
|
|
adjustable rate mortgage (ARM)
A mortgage loan whose interest rate fluctuates according to the movements of an assigned index or a designated market indicator--such as the weekly average of one-year U.S. Treasury Bills--over the life of the loan. To avoid constant and drastic fluctuations, ARMs typically limit how often and by how much the interest rate can vary.
|
|
adjusted basis
The original cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken.
|
|
adjustment date
The date on which the interest rate changes for an adjustable-rate mortgage (ARM).
|
|
adjustment period
The period that elapses between the adjustment dates for an adjustable-rate mortgage (ARM).
|
|
adjustments
Money that the buyer and sellers credit each other at the time of closing. Often includes taxes and down payment.
|
|
administrator
A person appointed by a probate court to administer the estate of a person who died intestate.
|
|
administrator/administratrix
A man/woman appointed by a court to settle the estate of a deceased person when there is no will. Contrast with executor/executrix.
|
|
adverse possession
The right of an occupant of land to acquire title against the real owner, where possession has been actual, continuous, hostile, visible, and distinct for the statutory period. The requirements for adversely possessing property vary between states, but usually include continuous and open use for a period of five or more years and paying taxes on the property in question.
|
