The HSH Mortgage Glossary Definitions are provided for informational purposes only. A provision which requires that the remaining balance due be paid if the borrower defaults on the loan or transfers title to another party.
Monthly payments can go up or down when the rate is adjusted.
The date that an ARMs interest rate is changed. The process of paying off the debt or mortgage, usually by equal monthly payments. Amortization Schedule A table which shows the distribution of monthly payments - how much will be applied toward principal and how much toward interest over the life of the loan. A figure which attempts to reflect the total cost of a loan, expressed as a yearly rate. Because the APR takes the total cost of credit into account, it can never be lower, and is almost higher than the stated note rate or advertised rate.