Amortization Amortization describes a loan payment by equal periodic payment calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance. Because all lenders apply the same rules in calculating the annual percentage rate, it provides consumers with a good basis for comparing the cost of loans. An assessment is a local tax levied against a property for a specific purpose, such as a sewer or street lights. A borrower is one who applies for and receives a loan in the form of a mortgage with the intention of repaying the loan in full. A broker is an individual in the business of providing assistance in arranging funding or negotiating contracts for a client but who does not loan the money himself.
Brokers usually charge a fee or receive a commission for their services.
A credit report is documenting the credit history and current status of a borrower's credit standing. The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her gross monthly income. In many states, the deed of trust is used in place of a mortgage to secure the payment of a note. Down Payment A down payment is the money paid to make up the difference between the purchase price and the mortgage amount. The equity is the difference between the fair market value and current indebtedness, also referred to as the owner's interest.