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Balloon Mortgage -
Behaves like a fixed-rate mortgage for a set number of years (usually five or seven) and then must be paid off in full in a single "balloon" payment. Balloon loans are popular with those expecting to sell or refinance their property within a definite period of time.


Balloon Payment -
The final lump sum that is paid at...

Acceleration clause -
The clause in a mortgage or trust deed that stipulates the entire debt is due immediately if the mortgagee defaults under the terms of the contract.
Acquisition cost -
Under an FHA loan, the purchase price or appraised value of the property plus the estimated closing costs.


Adjustable Rate Mortgage (ARM) -
A...

11th District Cost of Funds -
A monthly cost-of-funds index (COFI) reflecting the weighted-average interest rate paid by 11th Federal Home Loan Bank District savings institutions for savings and checking accounts. The 11th district covers Arizona, California and Nevada. The index is published on the last day of the month and reflects the cost of...