Adjustable Mortgage Loan (AML)
Any mortgage that does not have a fixed interest rate and fixed payments for the term of the loan, or does not amortize to zero at the end of the set term, when all required payments are made on time. (AMLs include ARMs, Buydowns, GEMs, GPARMs, and other mortgage types.)

Adjustable Rate Mortgage (ARM)
A mortgage in which the interest rate is adjusted periodically according to the movement in a preselected index. Technically, ARMs do not include mortgages where the payments change for other reasons, such as buydowns, although the term is used in this broader sense.

Amortization Schedule
A timetable for payment of a mortgage showing the amount of each payment applied to interest and principal and the remaining balance.

Amortize
Reduce a debt by regular payments of both principal and interest. ("Fully Amortizing" means payments scheduled to pay off the debt during a set term.)

Annual Percentage Rate (APR)
The total yearly cost of a mortgage stated as a percentage of the loan amount; includes the base interest rate, primary mortgage insurance, and loan origination fee (points).

Appraisal
A professional opinion of the market value of a property.

Appreciation
An increase in the value of a house do to changes in the market conditions or other causes. Assessed Value The valuation placed upon property by a public tax assessor for purposes of taxation.

AUS
Automated Underwriting System.

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