Alternative Mortgage to Amortization Schedule

 

Alternative Mortgage

Traditionally speaking, alternative mortgage loans are any mortgage loans other than a fixed-rate, constant level plan. In the past, ARM and balloon financing were often considered alternative loans.

Today, however, it has come to primarily mean non-conforming, Alt-A and subprime loan programs.

Aluminum Siding

A type of exterior wall siding that has become popular with both new residential developments and remodeling of older homes. Compared to clapboards, shingles and other types of siding, aluminum offers the advantage of longer life and relatively lower maintenance. Aluminum siding is easy to install, and the old siding need not be completely removed. However, because it is a conductive metal, aluminum siding is normally grounded.

Amenities

Attractive features, benefits or advantages of a real estate property that can add value to that property. Amenities are often aesthetic, but they are sometimes issues of convenience. Examples of amenities encountered by many of today’s condominium homebuyers, for example, are scenic views, swimming pools, luxury kitchens, security desks, entertainment rooms and business centers.

Additionally, proximity to public transportation, shopping centers, parks and work are also considered amenities. Although they add value to a property, amenities are difficult to value with precision, because one person’s amenity may be another person’s annoyance.

American Craftsman

The American Craftsman style, emerged in the late 1800s, following on the heels of the British Arts and Crafts movement of the mid-1800s. Both American and British movements celebrated craftsmanship, especially in the architecture and interior design of residential properties.

This approach to art emphasized originality and clear evidence of craftsmanship. In the American version, it also emphasized a more simple form and use of natural materials found in the region.

American Craftsman Bungalow

The American Craftsman bungalow typified the common styles of the American Arts and Crafts movement — with common features usually including low-pitch roof lines on a gabled or hipped roof; deeply overhanging eaves; exposed rafters or decorative brackets under the eaves; and a front porch beneath an extension of the main roof.

American Institute of Real Estate Appraisers (AIREA)

Now called the Appraisal Institute.

American Land Title Association

The American Land Title Association (Alta) is the industry association governing title search and title insurance companies.

American Rule

The term American Rule is another name for the Reasonable Use rule for water rights

The American Society of Appraisers (ASA) is a professional organization for appraisers of both real estate and personal property. Its members use the designations “ASA” or “FASA” (fellow).

American Society of Real Estate Counselors

The American Society of Real Estate Counselors (ASREC) is an affiliated organization of the National Association of Realtors (NAR) that provides advanced training and recognizes Realtors who have shown professionalism and success. Its members use the designation “CRE,” Counselor of Real Estate.

Americans with Disabilities Act

The Americans with Disabilities Act of 1990 is a federal legislation enacted to protect the employment and access rights of individuals with physical and mental disabilities, particularly with regard to public transportation, public accommodations and commercial properties. Readily achievable upgrades to existing structures must be made; otherwise, older properties can receive waivers. Residential properties need not conform, unless they have commercial uses.

AMO

See the Accredited Management Organization entry.

Amortization

The amortization refers to the periodic reduction of the loan’s principal balance, accomplished through the payment of a loan’s obligation through periodic installments until the loan’s debt is paid. In plain English, it is the length of time (or number of payments) needed to pay off the loan balance and all interest, based on calculated payments.

Note that the amortization is different from the loan term. For example, a 5-year balloon loan will have monthly payments amortized for 30 years (calculated to pay off the loan in 30 years), but will have a term of only five years. At the end of five years, the borrower must pay off or refinance the remaining balance.

Amortization Schedule

An amortization schedule is a table detailing each periodic payment on a amortizing loan (typically a mortgage), as generated by an amortization calculator.

While a portion of every payment is applied towards both the interest and the principal balance of the loan, the exact amount applied to principal each time varies (with the remainder going to interest). An amortization schedule reveals the specific monetary amount put towards interest, as well as the specific put towards the Principal balance, with each payment. Initially, a large portion of each payment is devoted to interest. As the loan matures, larger portions go towards paying down the principal.

Many kinds of amortization exist, including:

• Straight line (linear)
• Declining balance
• Annuity
• Bullet (all at once)
• Increasing balance (negative amortization)

Amortization schedules run in chronological order. The first payment is assumed to take place one full payment period after the loan was taken out, not on the first day (the amortization date) of the loan. The last payment completely pays off the remainder of the loan. Often, the last payment will be a slightly different amount than all earlier payments.

In addition to breaking down each payment into interest and principal portions, an amortization schedule also reveals interest-paid-to-date, principal-paid-to-date, and the remaining principal balance on each payment date.