ACCRUED INTEREST
The interest earned for the period of time that has elapsed since the date of the borrower's last payment.

ACQUISITION COST:
The purchase price and closing costs plus any cost incurred for rehabilitation, renovation, or energy improvements.

ADJUSTABLE RATE MORTGAGES (ARMs)
Home loans with interest rates that change periodically. The basis of this movement in a specified index and margin.

AMORTIZATION
Systematic and continuous repayment of a debt in installments, including principal and interest over a set period of time. At the end of the period the entire debt has been paid.

ANNUAL PERCENTAGE RATE (APR)
The actual rate you will pay, including interest and other finance charges. Because all lenders must follow the same rules to calculate the APR, it is a good way for applicants to compare the overall cost between loan options.

APPRECIATION
An increase in value; the opposite of depreciation.