You've probably heard some real estate terms and are wondering what in the world they mean. Use this glossary to look them up! If you are wondering what a word or phrase means and I don't have it in the glossary, please send me an email asking!

Adjustable Rate Mortgage (ARM)
A loan on which monthly payments will increase or decrease over time, based on changes in the ARM's interest rate index.

Adverse Possession
The legal process whereby someone not legally the owner MAY become legal owner of real property merely by physically occupying it against the legal owner's wishes for a statutory period of time.

Agency
The legal relationship between Buyer or Seller and their Realtor.

Amortization
The gradual repayment of a mortgage through monthly (e.g. installment) payments. In the early years of a mortgage, most of the monthly payment goes toward interest. Later in the mortgage, more of the payment goes toward reducing the loan's principal balance.

Annual Percentage Rate (APR)
The annual cost of a mortgage, including interest, loan fees and other costs, stated as a percentage of the loan amount.

Appraisal
The professional examination of property for the purpose of estimating the current market value or worth of a property. The written report of same.

Arbitration
A non-litigation method of dispute resolution. It is binding on all parties. Litigation is precluded.

Assessed Value
The value placed on property by a municipality for the purpose of levying taxes. It may differ widely from appraised or market value.

Assumption of Mortgage
Buyer assumes liability for an existing mortgage held by the seller. This is subject to approval by the lender, who must be willing to approve the buyer and release the seller.