ARM stands for ‘adjustable-rate mortgage,' which is a type of home loan that has a fixed interest rate for an initial period of time then after a certain point, the rate changes, which means it is no longer a fixed interest rate but rather the interest fluctuates during the life of the loan, based on the change or move
Arrears are accumulated debts that have not yet been paid upon the due date. For instance, if someone falls $5000 behind in paying for their mortgage, then they have built up $5000 in arrears.
See also: arrearages.
Assumable mortgage is a term for mortgages that can be transferred to another person. If a mortgage is assumable, the selling owner transfers the title and mortgage to the buyer instead of the buyer getting a different mortgage. This process can save the buyer fees and lots of money on interest if the mortgage has lower interest than the market.
An assumption is an assertion or statement that is taken as true or supposed as a fact without proof or substantiating evidence. An assumption may also be the act of taking over (another individual or entity’s) duty or responsibility.
[Last reviewed in June of 2021 by the Wex Definitions Team]
Attached property is property that has been seized pursuant to a court order, either as a provisional pre-judgment remedy or for the enforcement of a final judgment. Property may be attached only after the commencement of a lawsuit. In a pre-judgment request that property be attached, the movant must generally demonstrate a substantial risk of a future potential judgment’s lack of enforceability.
An attachment is a court order seizing specific property. Attachment is used both as a pre-trial provisional remedy and to enforce a final judgment.
Balloon mortgage is a mortgage where the payments are not large enough to pay off the entire mortgage during its amortization period.
Balloon payments refer to very large payments at the end of some short-term loans called balloon loans. Balloon loans are used in commercial settings and sometimes for personal loans, but since the balloon payment often is more than twice the regular payments, individuals rarely receive balloon loans. These loans usually begin with a fixed interest rate for the set loan period.
A biweekly mortgage is a repayment schedule in which half of the monthly payment is made every two weeks instead of making 12 full monthly payments per year.
