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Mortgage Glossary of Terms
Your guide to finding the definition to common mortgage terms.
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
A
Adjustable Rate Mortgage (ARM)
The interest rate on an ARM is not fixed for the life of the loan. These mortgages adjust periodically based on an index that changes with market conditions. The rate of interest is the sum of the index plus a margin. Most ARMs have periodic interest rate and payment caps, as well as a life cap.
Agent
Person authorized to act on behalf of another in dealings with third parties.
Amortization
The gradual reduction in the principal of a mortgage through scheduled installment payments.
Amortization Schedule
A schedule that shows the portions of each payment that are applied to interest and to principal. It also shows the loan balance remaining after each payment.
B
Balance
The current amount owed for the liability.
Balance Sheet
A report of the financial position of a business at a specific point in time, showing its assets, liabilities, and owner’s equity.
Adjustable Rate Mortgage (ARM)
The interest rate on an ARM is not fixed for the life of the loan. These mortgages adjust periodically based on an index that changes with market conditions. The rate of interest is the sum of the index plus a margin. Most ARMs have periodic interest rate and payment caps, as well as a life cap.
Agent
Person authorized to act on behalf of another in dealings with third parties.
Amortization
The gradual reduction in the principal of a mortgage through scheduled installment payments.
Amortization Schedule
A schedule that shows the portions of each payment that are applied to interest and to principal. It also shows the loan balance remaining after each payment.
Balance
The current amount owed for the liability.
Balance Sheet
A report of the financial position of a business at a specific point in time, showing its assets, liabilities, and owner’s equity.
PPP Forgiveness Application Deadline
Congress passed The Economic Aid Act which changed the deferment period from 6 months post covered period to 10 months post covered period. For example, if your covered period ended June 30, 2021, under the new guidelines the earliest your first loan payment wouldn’t be due until April 2022, and you have until then to request forgiveness. Please use the following calculation to help you identify when your forgiveness will be due:
- PPP borrowers may select a covered period anywhere from 8 weeks to 24 weeks.
- RCU is automatically calculating your loan due date based on a 24-week covered period, if you intend on using a shorter covered period please inform us immediately as this will impact your due date.
- Your correct deadline will be reflected in your online banking account.
If all or part of your PPP loan is not forgiven, your first loan payment will be due the first of the following month after a decision is made by the SBA.
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