A mortgage in which the interest rate is adjusted periodically, based on the movement of a financial index. As the payments are made, the debt is reduced so that at the end of fixed period or term, no money will be owed. The annual percentage rate refers to the total cost of the loan, expressed as a yearly rate. That part of the closing costs pre-paid to the lender at time of application to cover initial expenses. Most states require licenses.
Various lenders have their own lists of approved appraisers.
The value placed on a piece of real estate by the taxing authority for the purpose of taxation. Also called an assessment. A local tax levied against a property for a specific purpose, such as a sewer or streetlights. The outstanding balance of the mortgage is due in a lump sum at the end of the term. There is no payment of principal until the house is sold or the end of the loan term, whichever comes first.