A
- Acceleration
- The right of the mortgagee (lender) to demand immediate repayment of the loan balance upon borrower default.
- Adjustable Rate Mortgage (ARM)
- A mortgage in which the interest rate is adjusted periodically based on an index.
- Amortization
- The process of paying off a loan in regular installments of principal and interest.
B
- Balloon Mortgage
- A mortgage with small periodic payments and one large final payment.
- Broker
- A person who arranges real estate transactions between buyers and sellers.
C
- Closing Costs
- Fees and expenses paid at the closing of a real estate transaction.
- Collateral
- An asset pledged to secure a loan.
D
- Deed
- A legal document that conveys ownership of real estate.
- Down Payment
- The initial cash paid by a buyer toward the purchase price.
E
- Earnest Money
- A deposit made to demonstrate serious intent to purchase property.
- Equity
- The value of an owner's interest in a property above any debts owed.
F
- Foreclosure
- A legal process by which a lender takes control of a property after borrower default.
- Fixed Rate Mortgage
- A mortgage with a constant interest rate and payments for the entire loan term.
G
- Grace Period
- The time allowed after a payment is due before late fees are charged.
H
- Homeowner’s Insurance
- Insurance protecting against property damage and liability.
- HUD-1 Statement
- A settlement statement itemizing closing costs in a real estate transaction.
I
- Interest
- The cost of borrowing money, expressed as a percentage of the principal.
- Inspection
- A professional evaluation of a property’s condition before purchase.
J
- Joint Tenancy
- A form of ownership where two or more people share equal rights in a property.
K
- Key Rate
- A benchmark interest rate that influences mortgage lending rates.
L
- Lien
- A legal claim against a property to secure a debt.
- Listing Price
- The asking price set by the seller.
M
- Mortgage
- A loan secured by real property.
- Market Value
- The price a property would sell for under current market conditions.
N
- Note
- A written promise to repay a mortgage loan.
O
- Origination Fee
- The fee charged by a lender for processing a new loan application.
P
- Principal
- The amount borrowed or the amount still owed on a loan.
- Prepayment Penalty
- A fee charged if the borrower pays off the loan early.
Q
- Quitclaim Deed
- A deed transferring interest in a property without warranties.
R
- Refinance
- Replacing an existing mortgage with a new one, usually with better terms.
- Radon
- A naturally occurring gas that can pose health risks if found in homes.
S
- Survey
- A professional measurement of land to establish boundaries.
- Settlement
- The closing of a real estate transaction when the title passes.
T
- Title
- Legal evidence of property ownership.
- Truth in Lending Act
- A federal law requiring disclosure of loan terms and costs.
U
- Underwriting
- The process of evaluating a borrower’s loan application to assess risk.
V
- VA Loan
- A mortgage guaranteed by the U.S. Department of Veterans Affairs for eligible veterans.
W
- Warranty Deed
- A deed guaranteeing that the grantor holds clear title to a property.
X
- Xeriscaping
- A landscaping method designed to reduce water use, often relevant in real estate sales.
Y
- Yield
- The return on an investment, such as income from rental property.
Z
- Zoning
- Local government regulations that control land and property use.
