"A" Listings - Mortgage Glossary
- AAA Tenant – This refers to tenant with a top credit rating. This type of tenant is often critical to a developer's ability...
- Abandonment – The voluntary giving up or surrendering of property rights without transferring the title to another party...
- Abatement – This is the decrease or elimination of an excising condition. Excising conditions are those that relate to the amount of business done...
- Absorption – The annual sales or occupancy rate of a real estate property. A related term is the absorption rate...
- Acceleration Clause – A clause common to most real estate rental contracts that allows the lessor (or landlord) to demand full payment...
- Accommodator Loan – An third party who acts as a facilitator when a borrower sells a real estate investment property and has a profit...
- Accrued Interest – Interest that has built up on a loan. The dollar amount of interest that has accumulated to a specific date...
- Acquisition Loan – This is an commercial financing loan that provides development and construction loans for subdivision projects...
- Adjustable Rate Mortgage (ARM) – A mortgage loan with a variable rate feature. The rate is usually tied to the prime rate...
- Adjusted Basis – The overall cost of property ownership with respect to when it was bought...
- Adjustment Interval – The time between interest rate changes in the interest rate for an adjustable-rate mortgage...
- Aggregation – Lumping different properties together in a package. If a deal involves several apartment buildings, a single family dwelling...
- Amenities – Extras and nice touches that come with a property. These features are of special interest to prospective buyers and tenants...
- Amortization – Loan repayment schedule that shows how much of each monthly installment payments are applied to principle...
- Anchored – Made more secure by the presence of large national franchise commercial retail tenants with long term leases...
- Anchors – These are typically large national franchise commercial retail tenants with long term leases that act as bookends to malls...
- Annual Debt Service (ADS) – Total amount of all debt payments on a rental property for a one-year period...
- Annual Percentage Rate (APR) – The annualized interest rate on a rate that is compounded daily. For instance...
- Annuity – The income from a capital investment which is set up to be paid in a series of regular payments...
- Apartment Building Loan – A commercial real estate loan obtained for the express purpose of building or buying...
- Apartment Financing – Commercial real estate loans used to fund the construction of new apartment buildings...
- Application Fee – A fee that an applicant pays for consideration in the rental application process...
- Appraisal – A third-party assessment of the estimated fair-market value of a piece of real estate...
- Appreciation – Increase in value of a property over time due to market conditions and buyers of similar properties...
- Assumablity – The ability of a loan to be signed over to a buyer without the loan's underwriters approving the new buyer...
- Assumption Fee – Money paid for the privilege of assuming a mortgage loan without having to go through the usual...
- Arbitration – Similar to mediation. A process in which both parties to a dispute agree to try to resolve the dispute by going through the arbitration...
- Average Annual Occupancy – The percentage of a commercial property which is occupied by renters or tenants...
- Average Daily Rate – Used by commercial hotel loan lenders to figure out the hotel rate that should be charged...
- Axial Growth Theory – Urban and suburban growth and development that tends to follow major highways and roads...
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