Adjustment Interval: The period of time between changes in the interest rate for an adjustable-rate mortgage. Typical adjustment intervals are 6 months and 1year.

Appraisal: An estimate of the value of a property made by a qualified professional called an appraiser. (Impero Commercial Lending typically requires the appraiser to be MAI certified.)

Assumability: A mortgage loan which can be transferred to another person without a change in the terms of the loan. This typically requires a flat-fee to be paid to the lien-holder for transferring.

Loan amount:
Total amount of your loan.

Amortization:
Payment period in years.

Interest rate:
Annual interest rate for this loan. Interest is calculated monthly on the current outstanding balance of your loan at 1/12 of the annual rate.

Amenities: Noted in the appraisal, the non-monetary benefits derived from property ownership.

Amortization Period: The period, or length of time, over which the principal portion of a mortgage loan is scheduled to be paid down through periodic payments.

New monthly payment:
Monthly payment for this loan.

Annual Verifiable net income:
Your annual net income from IRS tax returns or other financial statements.

Annual depreciation expense:
Since depreciation reduces your net income, but not your cash flow, we add back depreciation in calculating your total net cash income.

Other non-cash charges:
Like depreciation, these are other non-cash charges to your net income that should be added back to calculate your total net cash income for the year.

Real estate mortgage:
Your monthly payment for any real estate mortgages.

Business line of credit:
Your monthly payment for any business lines of credit.

Auto loans:
Your monthly payment for any auto loans.

Credit cards:
Your monthly payment for any credit cards.

Other loans:
Your monthly payment for any other outstanding loans.

Monthly debt payments eliminated:
Enter the amount, if any, of the monthly obligations you entered above that will be paid off by this new loan.

Debt Service Coverage (DSC):
The Debt Service Coverage (DSC) is determined by dividing the total annual net cash income by the total annual debt service. If you have a DSC of 1.25 or higher, there is a good chance that you will be approved for your loan. 

Balloon Payment: One large payment of the remaining principal balance of a mortgage, due at a time specified in the contract (i.e. a 5-year balloon would have periodic payments made through 5 years and then a lump-sum payment made on the 60th month.)