An interest rate that periodically changes in relation to an index. Payments may go up or down as the rate is adjusted.
A repayment method in which the amount borrowed is repaid through regular monthly payments of principal and interest.
Annual Percentage Rate (APR)
The cost of credit on an annual basis, expressed as a percentage.
The fees that are paid when making an application. An application fee may include charges for property appraisal ($200-$400) and a credit report ($30-50).
A fee charged by an appraiser to estimate the market value of a specific property on a specific date. Required by most lenders to obtain a loan.
A written report by an appraiser containing an opinion as to the value of a property and the reasoning leading to that opinion.