abandonment
absolute fee simple title
abstract of judgment law
abstract of title
accelerated cost recovery system
accelerated depreciation
acceleration clause
acceptance
access
accessibility
accretion
acknowledgment
acre
acre foot
active income
active solar system
actual age
addendum
additional principal payment
add-on interest
adjustable-rate mortgage (arm)
adjusted book basis
adjusted cost basis
adjustment date
adjustment period
administrator
administrators deed
adr
ad valorem tax
adverse possession
adverse use
aeolian soil
affiant
affirmation
a-frame design
agency
agency closing
agent
agglomeration
agreed boundary
agreement of sale
air rights
alcove
alienation clause
alkali
alkaline soil
alley
all-inclusive mortgage
all-inclusive trust deed
allodial system
allowances
alternative minimum tax
alternative mortgage
aluminum-clad windows
aluminum siding
amenities
american society of home inspectors
americans with disabilities act
amortization
amortization schedule
amortization tables
amperage
anchor bolt
anchoring tentant
ancillary probate
annual
annual mortgagor statement
annual percentage rate (apr)
annuity
anticipation
anticipatory breach
application
application fee
appraisal
appraisal fee
appraisal report
appraised value
appraiser
appreciation
arbitration
arbor
arch
architect
architectural fees
arpent
asbestos
as-is condition
asking price
assessed value
assessment
assessment rolls
assessor
asset
assets
assignment
assignor
assumable mortgage
assumption
assumption clause
assumption fee
attachment
average price
avigation easement
awning windows
baby boomers
back fill
back title letter
back-to-back escrow
backup offer
backwater valve
balance
balance sheet
ballon note
balloon-frame construction
balloon loan
balloon mortgage
balloon payment
balustrade
bankruptcy
bargain sale
baseboard
baseboard electric heat
basement
basis point
bay
bay window
bearing wall
bed tax
before-tax income
beneficiary
bequest
betterment
betterments
bidding war
bilateral contract
bill of sale
binder
biweekly mortgage
blackout drapes
blanket insurance policy
blanket mortgage
blighted area
blind nailing
blue-ribbon condition
blue sky laws
blue-sky laws
board-and-batten siding
board foot
board of equalization
boilerplate
boma
bona fide
bond
bond market
bonds
book value
boot
boring test
borough
borrow
borrow pit
boulevard
boundary
braced framing
breach
breach of contract
breach of covenant
breach of warranty
break-even point
breast height
breezeway
brick
bridge loan
broker
brokerage
broom clean
brownstone
buffer strip
builder upgrades
building and loan association
building code
building inspector
building line or setback
building moratorium
building paper
building permit
building restrictions
build-to-suit
built-ins
bulkhead
bundle of rights
bungalow
business park
butterfly roof
buydown
buy-down mortgage
buyer broker
buyers market
buyers remorse
bylaws
call clause
call option
cancellation clause
can lights
cantilever
cap
cape cod style
capital
capital expenditure
capital gain
capital gains
capital gains tax
capital improvement
capitalization
capital loss
cap rate
caravan
carport
casement window
cash flow
cashiers check
cash-on-cash return
cash-out refinance
cathedral ceiling
caulk
caveat
caveat emptor
cavedium
ceiling height
central air conditioning
central business district
central business district (cbd)
certificate of deposit
certificate of deposit (cd)
certificate of deposit index
certificate of eligibility
certificate of eligibility
certificate of occupancy
certificate of reasonable value (crv)
certificate of sale
certificate of title
chain of title
chair railing
change frequency
change order
chattel
chattel mortgage
chimney back
chimney flue
chimney pot
cinder block
cinder fill
circuit breaker
cistern
classified property tax
clear title
client
closing
closing costs
closing costs
closing statement
cloud on title
cluster development
clustering
co-borrower
codicil
co-housing
coign
co-insurance
collapsible corporation
collar beam
collateral
collateral security
collection
collusion
column
column footing
co-maker
combination door
combination window
commercial bank
commercial property
commingling
commission
commitmen
commitment fee
common area
common area assessments
common-area assessments
common-area-fees
common areas
common elements
common-interest development
common law
community property
community reinvestment act
community shopping center
commute
comparables
comparable sales
comparative market analysis
competent
completion bond
component depreciation
compound interest
concrete tilt-up
condemnation
conditional commitment
conditional sales contract
condominium
condominium conversion
condominium hotel
conduit
conformity
congregant living
consent judgment
conservator
consideration
construction budget
construction documents
construction loan
construction to permanent loan
consumer credit counseling service (cccs)
contemporary style
contiguous lots
contingency
contingency listing
contingent fee
contract
contract for deed
contractor
contract to purchase
contractual lien
contribution
controlled growth
conventional loan
conventional mortgage
convertible adjustable-rate mortgag
convertible arm
conveyance
conveyance tax
cooperating broker
cooperative
cooperative (co-op)
cooperative corporation
cooperative farm credit system
cooperative mortgages
cooperative project
co-op housing
corner bead
corner influence
cornice
corporate relocation
corporation
corrective work
cosign
co-signer
cost approach
cost of funds index (cofi)
cost-plus contract
cottage
counteroffer
counter offer
covenant
covenants
craftsman style
crawl space
creative financing
credit
credit card discounts
credit history
credit life insurance
creditor
credit report
credit repository
credit scoring
credit union
cross-bridging
curtesy
cycles
debt
declining-balance method
deed
deed-in-lieu
deed in lieu of foreclosure
deed of trust
default
deferred exchange
deficiency judgment
delinquency
demand
deposit
depreciation
discount
discounted cash flows
discount points
discretionary funds
discretionary trust
disintegration
documentary stamps
dower
down payment
draws
due diligence
due-on-sale clause
due-on-sale provision
duplex
earnest money
earnest money deposit
easement
easement rights
easy money
e-commerce
economic life
economic obsolescence
effective age
effective demand
effective rate
eminent domain
encroachment
encumbrance
equal credit opportunity act (ecoa)
equilibrium
equitable interest
equity
equity loans
escalation clause
escheat
escrow
escrow account
escrow analysis
escrow disbursements
estate
eviction
examination of title
exchange
exclusive listing
executor
face value
factoring
factory-built houses
fair credit reporting act
fair housing law
fair market value
fannie mae (fnma)
fannie maes community home buyers program
feasibility study
federal housing administration (fha)
fee simple
fee simple estate
fha mortgage
fiduciary
financial intermediary
firm commitment
first mortgage
fixed expenses
fixed-rate mortgage
fixity
fixture
flood insurance
foreclosure
franchise
front footage
functional obsolescence
general obligation bonds
general partner
general warranty deed
gentrification
government loan (mortgage)
government national mortgage association
graduated lease
graduated payment loan
grantee
grantor
gross income
gross lease
ground lease
growth management
hazard insurance
highest and best use
hobby tax rules
home equity conversion mortgage (hecm)
home equity line of credit
home inspection
homeowners association
homeowners insurance
homeowners warranty
homogeneous tenants
hud
hud-1 settlement statement
hud median income
hypothecation
income approach
incremental taxes
incubator industry building
industrial development bonds
industrial park
infant industries
inheritability
inheritance tax
installment factor
installment sale
intelligent buildings
interest
interest factor
interim financing
interim loan
internal rate of return
inter vivos trust
intestate
investment
investment trust
involuntary lien
irrevocable trust
joint tenancy
joint venture
judgment
judicial foreclosure
jumbo loan
junior mortgage
labor-intensive
land bank
land ownership
late charge
lease
leasehold estate
leasehold interest
leasehold mortgage
lease option
lease with option to purchase
legal description
lender
lessee
lessor
leverage
liabilities
liability insurance
lien
life cap
life care
life estate
limited liability company
limited partnership
line of credit
liquid asset
liquidity
listing
loan
loan officer
loan origination
loan servicing
loan-to-value (ltv)
location
lock-in
lock-in clause
lock-in period
loft
mall
manufactured homes
margin
marketable title
market data approach
market value
maturity
mechanics lien
megacenter
merged credit report
mineral rights
miniwarehouse
mobile-home mortgage
modification
moratorium
mortgage
mortgage banker
mortgage broker
mortgage commitment
mortgagee
mortgage insurance (mi)
mortgage insurance premium
mortgage insurance premium (mip)
mortgage life and disability insurance
mortgage note
mortgagor
multidwelling units
multiple listing
necessary goods
negative amortization
neighborhood
net lease
net worth
no cash-out refinance
no-cost loan
nominal interest rate
no-points
notary public
note
note rate
notice of default
occupancy rate
offer
off-site improvements
open market operations
operating expenses
opm
option
original principal balance
origination fee
owner financing
partial payment
payment change date
periodic payment cap
periodic rate cap
personal property
piti
piti reserves
planned unit development
planned unit development (pud)
plat
pmi
point
points
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)
promissory note
public auction
purchase agreement
purchase money transaction
qualifying ratios
quitclaim deed
rate lock
real estate agent
real estate broker
real estate settlement procedures act (respa)
real property
realtor
recorder
recording
refinance transaction
refinancing
remaining balance
remaining term
rent loss insurance
repayment plan
replacement reserve fund
restrictive covenants
revolving debt
right of first refusal
right of ingress or egress
right of survivorship
sale-leaseback
secondary market
second mortgage
secured loan
security
seller carry-back
sellers market
servicer
servicing
settlement statement
special assessments
special lien
special warranty deed
state stamps
subdivision
subordinate financing
survey
sweat equity
tax
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-step mortgage
two- to four-family property
va mortgage
variable interest rate
vested
veterans administration (va)
voluntary lien
waive
wrap-around mortgage
zoning ordinances

 

abandonment
The voluntary relinquishment of rights of ownership or another form of interest (an easement) by failure to use the property over an extended period of time.

abstract of title
A summary of the public records relating to the title to a particular piece of land. An attorney or title insurance company reviews an abstract of title to determine whether there are any title defects which must be cleared before a buyer can purchase clear, marketable, and insurable title.

adjustable-rate mortgage (ARM)
A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes.

amortization
The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.

amortization schedule
A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.

annual percentage rate (APR)
This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It works sort of like this, but not exactly, so only use this as a guideline: deduct the closing costs from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead of your actual loan amount. You will come up with a number close to the APR. Because you are using the same payment on a smaller amount, the APR is always higher than the actual not rate on your loan.

application
The form used to apply for a mortgage loan, containing information about a borrower’s income, savings, assets, debts, and more.

appraisal
A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.

appraiser
An individual qualified by education, training, and experience to estimate the value of real property and personal property. Although some appraisers work directly for mortgage lenders, most are independent.

appreciation
The increase in the value of a property due to changes in market conditions, inflation, or other causes.

assessed value
The valuation placed on property by a public tax assessor for purposes of taxation.

assessment
The placing of a value on property for the purpose of taxation.

assessor
A public official who establishes the value of a property for taxation purposes.

asset
Items of value owned by an individual. Assets that can be quickly converted into cash are considered "liquid assets." These include bank accounts, stocks, bonds, mutual funds, and so on. Other assets include real estate, personal property, and debts owed to an individual by others.

assignment
When ownership of your mortgage is transferred from one company or individual to another, it is called an assignment.

assumption
The term applied when a buyer assumes the seller’s mortgage.

balloon mortgage
A mortgage loan that requires the remaining principal balance be paid at a specific point in time. For example, a loan may be amortized as if it would be paid over a thirty year period, but requires that at the end of the tenth year the entire remaining balance must be paid.

balloon payment
The final lump sum payment that is due at the termination of a balloon mortgage.

bankruptcy
By filing in federal bankruptcy court, an individual or individuals can restructure or relieve themselves of debts and liabilities. Bankruptcies are of various types, but the most common for an individual seem to be a "Chapter 7 No Asset" bankruptcy which relieves the borrower of most types of debts. A borrower cannot usually qualify for an "A" paper loan for a period of two years after the bankruptcy has been discharged and requires the re-establishment of an ability to repay debt.

bill of sale
A written document that transfers title to personal property. For example, when selling an automobile to acquire funds which will be used as a source of down payment or for closing costs, the lender will usually require the bill of sale (in addition to other items) to help document this source of funds.

biweekly mortgage
A mortgage in which you make payments every two weeks instead of once a month. The basic result is that instead of making twelve monthly payments during the year, you make thirteen. The extra payment reduces the principal, substantially reducing the time it takes to pay off a thirty year mortgage. Note: there are independent companies that encourage you to set up bi-weekly payment schedules with them on your thirty year mortgage. They charge a set-up fee and a transfer fee for every payment. Your funds are deposited into a trust account from which your monthly payment is then made, and the excess funds then remain in the trust account until enough has accrued to make the additional payment which will then be paid to reduce your principle. You could save money by doing the same thing yourself, plus you have to have faith that once you transfer money to them that they will actually transfer your funds to your lender.

bond market
Usually refers to the daily buying and selling of thirty year treasury bonds. Lenders follow this market intensely because as the yields of bonds go up and down, fixed rate mortgages do approximately the same thing. The same factors that affect the Treasury Bond market also affect mortgage rates at the same time. That is why rates change daily, and in a volatile market can and do change during the day as well.

bridge loan
Not used much anymore, bridge loans are obtained by those who have not yet sold their previous property, but must close on a purchase property. The bridge loan becomes the source of their funds for the down payment. One reason for their fall from favor is that there are more and more second mortgage lenders now that will lend at a high loan to value. In addition, sellers often prefer to accept offers from buyers who have already sold their property.

broker
Broker has several meanings in different situations. Most Realtors are "agents" who work under a "broker." Some agents are brokers as well, either working form themselves or under another broker. In the mortgage industry, broker usually refers to a company or individual that does not lend the money for the loans themselves, but broker loans to larger lenders or investors. (See the Home Loan Library that discusses the different types of lenders). As a normal definition, a broker is anyone who acts as an agent, bringing two parties together for any type of transaction and earns a fee for doing so.

buydown
Usually refers to a fixed rate mortgage where the interest rate is "bought down" for a temporary period, usually one to three years. After that time and for the remainder of the term, the borrower’s payment is calculated at the note rate. In order to buy down the initial rate for the temporary payment, a lump sum is paid and held in an account used to supplement the borrower’s monthly payment. These funds usually come from the seller (or some other source) as a financial incentive to induce someone to buy their property. A "lender funded buy down" is when the lender pays the initial lump sum. They can accomplish this because the note rate on the loan (after the buy down adjustments) will be higher than the current market rate. One reason for doing this is because the borrower may get to "qualify" at the start rate and can qualify for a higher loan amount. Another reason is that a borrower may expect his earnings to go up substantially in the near future, but wants a lower payment right now.

call option
Similar to the acceleration clause.

Certificate of Reasonable Value (CRV)
Once the appraisal has been performed on a property being bought with a VA loan, the Veterans Administration issues a CRV.

chain of title
An analysis of the transfers of title to a piece of property over the years.

clear title
A title that is free of liens or legal questions as to ownership of the property.

cloud on title
Any conditions revealed by a title search that adversely affect the title to real estate. Usually clouds on title cannot be removed except by deed, release, or court action. An outstanding claim or encumbrance which adversely affects the marketability of title.

co-borrower
IAn additional individual who is both obligated on the loan and is on title to the property.

collateral
In a home loan, the property is the collateral. The borrower risks losing the property if the loan is not repaid according to the terms of the mortgage or deed of trust.

collection
When a borrower falls behind, the lender contacts them in an effort to bring the loan current. The loan goes to "collection." As part of the collection effort, the lender must mail and record certain documents in case they are eventually required to foreclose on the property.