Spectrus – Investment Real Estate Glossary – A
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- Accommodator
- A qualified intermediary who agrees to assist the exchanger to affect a tax-deferred exchange. Also described as a facilitator or an intermediary, a qualified intermediary cannot be the taxpayer, a related party, or an agent of the taxpayer.
- Adjusted basis
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The basis of the property adjusted for any capital improvements or depreciation. To calculate the
adjusted basis, take the basis (the cost of the property) and add the cost of any capital
improvements made to the property during the taxpayer's ownership, and then subtract any
depreciation taken on the property during the same time period. Once the adjusted basis is known,
gain or loss can be computed on a transaction.
- Amortization
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A gradual paying off of a debt by periodic installments. Example: A $100,000 loan is arranged at a
12% interest rate. The borrower pays $13,500 in the first year. Of the payment, $12,000 is for
interest, $1,500 for principal. After the payment, the loan balance is amortized to $98,500.
- Amortization schedule
A timetable for payment of a mortgage loan. An amortization schedule shows the amount of each payment applied to interest and principal and shows the remaining balance after each payment is made. - Amoritization term
The amount of time required to amortize the mortgage loan. The amortization term is expressed as a number of months. For example, for a 30-year fixed-rate mortgage, the amortization term is 360 months. - Annual percentage rate
The cost of debt (such as a mortgage) that consumers pay, expressed as a single annual percentage. - Assumable mortgage
A mortgage that can be taken over ("assumed") by the buyer when a home is sold.
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