ARM – stands for Adjustable Rate Mortgage which is a mortgage whose interest rate is adjusted periodically based on a preselected index.
A.P.R. – annual percentage rate (which you also see on credit card applications). This is the interest rate reflecting the cost of a mortgage as a yearly rate.
Foreclosure – legal process by which the lender forces a sale of a mortgaged property because the borrower has not met the terms of the mortgage.
PITI – Principal, Interest, Taxes and Insurance.
Mortgage Broker – an individual in the business of assisting in arranging funding or negotiating the contract for a client. Does not lend the money him or herself.
