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Business Glossary-Term List

Welcome to the MISMO Business Glossary - your online source of mortgage industry business terms and data point descriptions. Follow the links provided for Term Type; Focus Area; and Source descriptions; complete terms of authorized usage; and a more detailed description of the MISMO Business Glossary.  Search tip:  Use quotes for an exact search (e.g., "keyword or phrase"). 

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MBA Glossary Data
Absorption Rate

The rate at which vacant space is either leased or sold to users in the market place. Absorption rate is usually expressed in square feet per year or, in the case of multifamily housing, number of units per year.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Accelerated Depreciation

A method of calculating depreciation in which a larger portion of depreciation is charged in early years than in later years.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Accident And Health Premium

A portion of the amount paid by a borrower for mortgage insurance that ensures the continuance of mortgage payments in the event of a mortgagor�s disability or illness.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Accounts Payable

Money owed by a business to suppliers of goods or services. Accounts payable are considered current liabilities on the balance sheet.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Accounts Receivable

Money owed to a business for goods or services provided to customers. Accounts receivable are classified as current assets on the balance sheet, with a contra account for bad debts on receivables.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Accrued Interest

Interest earned for the period of time elapsed since interest was last paid.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Acquisition Cost

In a HUD/FHA transaction, the price the borrower paid for the property plus any of the following costs: closing, repairs or financing (except discounts in other than a refinance transaction). Does not include prepaid discounts in a purchase transaction, mortgage insurance premiums or similar add-ons.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Acre

A unit of measure for land, 43,560 square feet.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Actual Cash Value

Valuation of damaged property which allows for depreciation.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Ad Valorem

Based on the value of the property.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Ad Valorem Taxes

Real estate taxes on the assessed value of property.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Add-On Interest

The full amount of interest calculated on the original principal for the term of the loan. This interest is added to the original principal, thereby becoming a part of the face amount of the promissory note.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Adjusted Basis

The original cost of a property, plus the value of any capital expenditures for improvements to the property, minus any depreciation taken.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Adjusted Gross Income

A person�s total income, as reported on the IRS 1040 tax return form, after allowable contributions, deductions and expenses (alimony).

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Adjusted Sales Price

IRS term for the sales price of a home minus the costs of the sale. Used to calculate capital gains.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Adjustment Interval

On an adjustable rate mortgage (ARM), the interval of time between changes in the interest rate or monthly payment, typically one, three or five years, depending on the index.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Adjustment Period

The length of time which dictates interest rate adjustments on an adjustable rate mortgage. A six-month ARM would have an adjustment every six months.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Adjustment Period Cap

The amount that the interest rate is allowed to increase or decrease at the time of adjustment of an adjustable rate mortgage. A one year adjustable would have an annual cap, since the adjustment period is every year.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

Advance

In real estate, a partial disbursement of funds under a note. Most often used in connection with construction lending.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

After-Acquired Property

The property a debtor acquires after the execution of a mortgage or other form of indebtedness that additionally secures the indebtedness. If the mortgage note contains a statement on after-acquired property, it is said to have an "after-acquired" clause.

Term Source: MBA Glossary

Term Type: Data

Focus Area: #MBAGlossary

 

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