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| Mortgage Glossary |
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Acceleration
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The right of the mortgagee (lender) to demand the immediate repayment of the mortgage loan balance upon the default of the mortgagor (borrower), or by using the right vested in the Due on Sale Clause.
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Adjustable Rate Mortgage (ARM) |
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A mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Also sometimes known as a renegotiable rate mortgage, variable rate mortgage or Canadian rollover mortgage. |
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Adjusted Basis |
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A mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Also sometimes known as a renegotiable rate mortgage, variable rate mortgage or Canadian rollover mortgage. |
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Adjustment Date |
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The date that the interest rate changes on an adjustable rate mortgage (ARM). |
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Adjustment Interval |
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On an adjustable rate mortgage, the time between changes in the interest rate and/or monthly payment, typically one, three or five years depending on the index. |
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Adjustment Period |
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The period elapsing between adjustment dates for an adjustable rate mortgage (ARM).
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