Anyone who has taken out a mortgage needs to get serious; that means that you need to learn your way around the various terms and jargon that people use when talking about mortgages. You nee to learn the terms so that nothing gets by your and you know what people who are more knowledgeable are talking about. You do not want to be left out of the loop do you? Besides, it will save you a lot of time and confusion so that you do not have to do research all the time.
Below are some terms that you may encounter when talking about mortgage at some point or another.
First term that you may want to be familiar with is Acceleration Clause. This is a term for any contact provisions that may give the lender his right to demand repayments for any loan balance just in case the person who borrowed the money violates any clause in the contract. The lender may even get the full amount of the loan in most cases. You have to remember that this can happen to you so make sure that you are able to fulfill all of the clauses in the contract; so one valuable lesson here is that you read your contract thoroughly.
Another term that you will hear is something called Accrued Interest, which means interest that is not paid but rather one that is earned. This is the interest that adds up to the amount that you borrowed. So for instance, you borrow x amount that gets y interest a month. That means the amount you pay is X+Y=XY. It usually just adds up to a bigger amount. That is all.
Next term that you may want to get to know is something called Adjustable Rate Mortgage or ARM. ARM is a kind of mortgage where the interest rate may be changed by whoever lends the money, but only the initial period. You will find that in many other countries outside the US, they allow the changes in rates to be the lender's decision. The US functions is a more standard way and has more uniform rates.