Mortgage Glossary

We do our best as your Mortgage Professional to explain the details of your mortgage needs with you. A mortgage is by far the largest financial decision most people make, so it’s always good to make an educated decision on your purchase. We’ve taken the time to provide you with common terms used in a mortgage transaction to make your experience as simple as possible.


Agreement of Purchase and Sales

The legal contract a purchaser and a seller go into. We recommend that you have your offer prepared by a professional realtor that has the knowledge and experience to satisfactorily protect you with the most suitable clauses and conditions.

Amortization Period

The number of years it takes to repay the entire amount of the financing based on a set of fixed payments.



The process of determining the market value of a property.


What you own or can call upon. Often used in determining net worth or in securing financing.

Assumption Agreement

A legal document signed by a buyer that requires the buyer assume responsibility for the obligations of an existing mortgage. If someone assumes your mortgage, make sure that you get a release from the mortgage company to ensure that you are no longer liable for the debt.