For Buyers: Glossary of Terms

• 401(k)/403(b)
• 401(k)/403(b) loan

  A

• acceleration clause
• adjustable-rate mortgage (ARM)
• adjustment date
• amortization
• amortization schedule
• annual percentage rate (APR)
• application
• appraisal
• appraised value
• appraiser
• appreciation
• assessed value
• asset
• assignment
• assumable mortgage

  B

• balloon mortgage
• balloon payment
• bankruptcy
• bill of sale
• biweekly mortgage
• bond market
• bridge loan
• broker
• buydown

  C

• call option
• cap
• cash-out refinance
• certificate of deposit
• certificate of deposit index
• Certificate of Eligibility
• Certificate of Reasonable Value (CRV)
• chain of title
• clear title
• closing
• closing costs
• closing statement
• cloud on title
• co-borrower
• collateral
• collection
• commission
• common area assessments
• common areas
• common law
• community property
• comparable sales
• condominium
• condominium conversion
• condominium hotel
• construction loan
• contingency
• contract
• conventional mortgage
• convertible ARM
• cooperative (co-op)
• cost of funds index (COFI)
• credit
• credit history
• credit report
• credit repository
• creditor

  D

• debt
• deed
• deed of trust
• deed-in-lieu
• default
• delinquency
• deposit
• depreciation
• discount points
• down payment
• due-on-sale provision

  E

• Earnest Money
• earnest money deposit
• easement
• effective age
• eminent domain
• encroachment
• encumbrance
• Equal Credit Opportunity Act (ECOA)
• equity
• escrow
• escrow account
• escrow analysis
• escrow disbursements
• estate
• eviction
• examination of title
• exclusive listing
• executor

  F

• Fair Credit Reporting Act
• fair market value
• Fannie Mae (FNMA)
• Fannie Mae's Community Home Buyer's Program
• Federal Housing Administration (FHA)
• fee simple
• fee simple estate
• FHA mortgage
• firm commitment
• first mortgage
• fixed-rate mortgage
• fixture
• flood insurance
• foreclosure

  G

• government loan (mortgage)
• Government National Mortgage Association (Ginnie Mae)
• grantee
• grantor

  H

• hazard insurance
• Home Equity Conversion Mortgage (HECM)
• home equity line of credit
• home inspection
• homeowners' association
• homeowner's insurance
• homeowner's warranty
• HUD median income
• HUD-1 settlement statement

  J

• joint tenancy
• judgment
• judicial foreclosure
• jumbo loan

  L

• late charge
• lease
• lease option
• leasehold estate
• legal description
• lender
• liabilities
• liability insurance
• lien
• life cap
• line of credit
• liquid asset
• loan
• loan officer
• loan origination
• loan servicing
• loan-to-value (LTV)
• lock-in
• lock-in period

  M

• margin
• maturity
• merged credit report
• modification
• mortgage
• mortgage banker
• mortgage broker
• mortgage insurance (MI)
• mortgage insurance premium (MIP)
• mortgage life and disability insurance
• mortgagee
• mortgagor
• multidwelling units

  N

• negative amortization
• no cash-out refinance
• no-cost loan
• note
• note rate
• notice of default

  O

• original principal balance
• origination fee
• owner financing

  P

• partial payment
• payment change date
• periodic payment cap
• periodic rate cap
• personal property
• PITI
• PITI reserves
• Planned Unit Development (PUD)
• point
• power of attorney
• pre-approval
• prepayment
• prepayment penalty
• pre-qualification
• prime rate
• principal
• principal balance
• principal, interest, taxes, and insurance (PITI)
• private mortgage insurance (MI)
• Probate Sale
• promissory note
• public auction
• purchase agreement

  Q

• qualifying ratios
• quitclaim deed

  R

• rate lock
• real estate agent
• Real Estate Settlement Procedures Act (RESPA)
• real property
• recorder
• recording
• refinance transaction
• remaining balance
• remaining term
• rent loss insurance
• repayment plan
• replacement reserve fund
• revolving debt
• right of first refusal
• right of ingress or egress
• right of survivorship

  S

• sale-leaseback
• second mortgage
• secondary market
• secured loan
• security
• seller carry-back
• servicer
• servicing
• settlement statement
• subdivision
• subordinate financing
• survey
• sweat equity

  T

• tenancy in common
• third-party origination
• title
• title company
• title insurance
• title search
• transfer of ownership
• transfer tax
• Treasury index
• trustee
• Truth-in-Lending
• two- to four-family property
• two-step mortgage

  V

• VA mortgage
• vested
• Veterans Administration (VA)
  
  

  	VETERANS ADMINISTRATION (VA) An agency of the federal government that guarantees residential mortgages made to eligible veterans of the military services. The guarantee protects the lender against loss and thus encourages lenders to make mortgages to veterans.