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Acceleration Clause: Clause in mortgages that allows the lender to demand repayment in full if the debtor misses a monthly payment. Can also apply to rental agreements, lease agreements and in cases of serious breach of contract.
Acceptance of lease/loan: Accepting certain lease and loan terms and entering into agreement of them.
Account Executive: Professional who specializes in offering and securing leases and loans.
Account Manager: In Canada the same person as an Account Executive, one who specializes in offering and securing leases and loans.
Accounts Payable: Any outstanding debt a company owes for goods and services received.
Accounts Receivable: The collective amount of money a company has in outstanding invoices for goods or services rendered and sold.
Accounts Receivable Aging Report: A report of outstanding invoices by customer and by date of outstanding invoice.
Accrued Interest: The amount of interest that has accumulated on the loan to and or from certain dates.
ACH (Automated Clearing House): Automatic bank withdraw and payment method of drawing on someone’s bank account on a regular specified date.
Acquisition: The act of one business or entity taking over and controlling the interests of another business or entity.
Acquisition Loan: Loans that provide commercial funding for development and construction, often of raw land and preparing them for commercial use.
Acreage: Used to measure land, it represents a two-dimensional measurement equal in size to 4,840 square yards or 43,560 square feet.
Advance Rate: A percentage of a cash stream that can be advanced from a lender to a client.
Advances: Disbursements from loans based usually based on purchase price or appraisal value
Adjustable Rate Mortgage (ARM): A mortgage that has a changing interest rate. The interest rate changes based on indexes decided agreed upon at the time the mortgage is issued. Typically monthly payments on adjustable rate mortgages are cheaper at first than fixed rate mortgages but during the life of the loan monthly payments can go up or down as the interest rate adjusts.
Adjustment Interval: The time interval between interest rate changes in adjustable rate mortgages. Common adjustment intervals are 6 months and 1 year.
Alternative Financing: Financing products and mortgages offered below market rate. Alternative financing includes some ARM’s, buy-downs and graduated payment mortgages.
Amenities: Amenities are noted and applied in appraisals and can add value to a property. Include any extras, or unique features that will be of interest to potential buyers.
Amortization: The repayment of a loan or mortgage through regular payments of both principle and interest.
Amortization Period: The period of time it takes to repay the principle balance on a loan or mortgage.
Amortization Schedule: A schedule showing the payments over the life of the loan and how the payments are applied to both principle and interest.
Amortized Loan: Loan or mortgage where payment funds pay both principle and interest throughout the life of the loan.
Anchored: Refers to having established, long-term and recognized retailers in a retail shopping mall or strip mall with multiple tenants.
Anchors: Refers to the specific retailers that anchor a retail center such as a shopping mall or strip mall.
Angel Investor: Usually an affluent individual who personally provides capital for start-ups and small businesses in exchange for either debt (in a loan form) or for equity in the business.
Annual Percentage Rate (APR): The annual rate of interest charged on a debt or outstanding debt balance including all fees, costs and other expenses of the loan or debt. The total cost to borrow or have credit expressed as an annual percentage of interest of the amount borrowed. In mortgages and loans it factors in and includes any fees, closing costs and other loan expenses.
Application: Prospective borrowers will fill out an application disclosing personal information, references, financial disclosures and other information by which the lender can use to ascertain creditworthiness.
Appraisal: Property value assessment performed by a third-party appraiser to determine fair market value of property.
Appreciation: The increase in value of an asset or property over time from its original value.
Articles of Incorporation: Documents that are filed with a state by a corporation and upon approval a Certificate of Incorporation is issued. A Charter of Incorporation is the combination of the Articles of Incorporation and the Certificate of Incorporation.
Assets: Real or personal owned property that has value and can be used to pay debts or commitments.
Assignability: The ability to sign over, sell or assign to another an income stream.
Assignee: One who has, is assigned, given or buys the rights to an asset.
Assignment: A written agreement that transfers interest in a loan, mortgage or lease from one who owns the interest to another.
Assignor: One who has ownership in the interest of a loan or mortgage and is selling, giving or assigning the interest to another and thereby forfeiting rights to that asset.
Assisted Living: Housing usually dedicated to seniors and elderly which can include independent and various forms of housing with assistance to tenants.
Assumability: Ability of a loan to be transferred from the borrower to another without having to change the new terms or paying it off and re-securing another loan. Often, the transfer of loan will have a one-time flat fee.
Assumable Loan: A loan that can be assumed and transferred from the borrower to another without changes in the loan terms.
Available Square Footage: The square footage that is available to lease, rent or buy.
Average Annual Occupancy: The percentage of occupancy for rented units in apartments, complexes or neighborhoods.
Average Daily Rate: Rate composed daily occupancy rates and seasonal factors for a hotel.
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