partial payment
A payment that is not sufficient to cover the scheduled monthly payment on a mortgage loan.

payment change date
The date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM) or a graduated-payment adjustable-rate mortgage (GPARM). Generally,…

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negative amortization
A gradual increase in mortgage debt that occurs when the monthly payment is not large enough to cover the entire principal and interest due. The amount of the shortfall is added to the remaining balance to create “negative” amortization.

net…

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margin
For an adjustable-rate mortgage (ARM), the amount that is added to the index to establish the interest rate on each adjustment date, subject to any limitations on the interest rate change.

master association
A homeowners’ association in a large condominium or planned unit development…

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late charge
The penalty a borrower must pay when a payment is made a stated number of days (usually 15) after the due date.

lease
A written agreement between the property owner and a tenant that stipulates the conditions under which the tenant…

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income property
Real estate developed or improved to produce income.

index
A number used to compute the interest rate for an adjustable-rate mortgage (ARM). The index is generally a published number or percentage, such as the average interest rate or yield on Treasury bills. A margin…

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