Montrose, CO Office

Moab, UT Office

Abstract of Title - A summary of recorded transactions concerning a property. (An attorney or title insurance company examines an abstract of title for any title defects which must be cleared before a buyer can purchase clear, marketable, and insurable title.)

Acceleration Clause - Condition in a mortgage that gives the lender the right to require immediate repayment of the loan balance if regular mortgage payments are not made, or for breach of other conditions of the mortgage.

Accrued Interest - Interest earned but not yet paid.

Adjustable Rate - An interest rate that changes periodically according to an index.

Adjustable Rate Mortgage (ARM) – This is a mortgage with an interest rate that is adjusted periodically to reflect changes in market conditions.  Every ARM is tied to an index.  When the interest on the index rises, so do the payments on your ARM.  An ARM gives you the benefits of lower monthly payments in the initial period of the loan, but the homeowner must be prepared to make higher payments, or to refinance, if rates rise.  Interest rate and payments rise and and fall with the market index.

Adjustment Interval – The time between changes in the interest rate and monthly payments on an ARM.