Acceleration clause – this is a provision in the mortgage that allows the lender the right to demand payment of the entire principal balance if a payment is missed.
Amortization – the gradual repayment of a mortgage loan by installments.
Equity – a homeowner’s financial interest in a property. Difference between the fair market value and the amount still owed.
Jumbo Loan – loan that exceeds Fannie Mae’s mortgage amount limits.
Net Worth – the value of a person’s assets including cash and minus the liabilities.
