Term

Definition

AFFORDABILITY ANALYSIS

A calculation used to determine an individual's likelihood of being able to meet the obligations of a mortgage for a particular property. Takes into account the down payment, closing costs and on-going mortgage payments.

AGENT

A person who has been appointed to act on behalf of another for a particular transaction.

AMENITY

Any feature of a property that increases its value or desirability. These might include natural amenities such as location or proximity to mountains, or man-made amenities like swimming pools, parks or other recreation.

AMERICAN SOCIETY OF APPRAISERS

An organization of appraisal professionals and others interested in the appraisal profession.

AMORTIZATION

The repayment of a loan through regular periodic payment.

AMORTIZATION SCHEDULE

The breakdown of individual payments throughout the life of an amortized loan, showing both principal contribution and debt service (interest) fees.

AMORTIZATION TERM

The length of time over which an amortized loan is repaid. Mortgages are commonly amortized over 15 or 30 years.

AMPERAGE

A measure of electric current describing the magnitude.

ANNUAL PERCENTAGE
RATE (APR)

The rate of annual interest charged on a loan.

ANNUITY

A sum of money paid at regular intervals, often annually.

APPLICATION

A form used to apply for a mortgage loan that details a potential borrower's income, debt, savings and other information used to determine credit worthiness.

APPRAISAL

A ''defensible'' and carefully documented opinion of value. Most commonly derived using recent sales of comparable properties by a licensed, professional appraiser.

APPRAISAL FOUNDATION

A not-for-profit educational organization established by the appraisal profession in the United States in 1987. It is dedicated to the advancement of professional valuation and responsible for establishing, improving, and promoting the Uniform Standards of Professional Appraisal Practice (USPAP).

APPRAISAL INSTITUTE

A world-wide organization dedicated to real estate appraisal education, publication and advocacy

APPRAISAL PRINCIPLES

The basic building blocks of the property valuation process, including property inspection, market analysis and basic economics.