Definition: pre-approval Pre-approval is the evaluation of a potential borrower by a lender to determine whether the borrower qualifies for... read more →
Definition: payment cap A payment cap is a set upper-limit on the interest rate to protect you when getting an adjustable-rate... read more →
Definition: origination fee An origination fee is a fee charged by a lender entering into a loan agreement to cover... read more →
Definition: mortgage insurance Mortgage Insurance is a policy that compensates lenders or investors for any losses incurred due to the... read more →
Definition: lien A lien is a legal right to the possession of a property owned by another person until a debt owed by... read more →
Definition: jumbo loan / jumbo mortgage A jumbo loan, or jumbo mortgage, is a home loan that exceeds conforming loan... read more →
Definition: joint ownership Joint ownership, or joint tenancy, is the right of ownership held by two or more individuals, in... read more →
Definition: investment property An investment property refers to a property in which the owner uses to earn money through rentals, for... read more →
Definition: HUD loan HUD loans are made available for people who are dedicated to financial responsibility and restoring their financial... read more →
Definition: MLS (multiple listing service) A multiple listing service, or MLS, is a service that provides a searchable database of property... read more →
Definition: home price index A home price index is a tool that measures changes in single-family home prices in a... read more →
Definition: good faith estimate A good faith estimate is the estimate of fees due at the closing for a mortgage... read more →
Definition: flood certification A flood certification is a document that states the flood zone status of a real estate property,... read more →
Definition: fair market value Fair market value is the estimate of the market value of a property. FMV is based... read more →
Definition: FHA Loan A FHA loan is a mortgage issued by federally qualified lenders and insured by the FHA. FHA loans... read more →
Definition: FHA FHA stands for Federal Housing Administration. The Federal Housing Administration is a government agency that sets standards for construction, underwriting,... read more →
Definition: escrow Escrow is the monetary assistance offered by a third-party on behalf of the transacting parties.
Definition: equity Also known as real property value, equity is the amount the owner would receive after the property is... read more →
Definition: earnest Earnest, or earnest money, is an amount of money paid to confirm a contract.
Definition: deed of trust A deed of trust is a deed where a legal title in real property is transferred... read more →
Definition: credit (loan related) Credit is a contractual agreement when a borrower receives something of value now and agrees to... read more →
Definition: contingency A contingency is a provision in a real estate contact that details that the contract would cease to... read more →
Definition: construction loan A construction loan is a short-term loan which is used to finance building a home or other... read more →
Definition: closing agent A closing agent is an impartial third party who oversees the final details of a real estate... read more →
Definition: closing Closing is the final step in a real estate transaction, also known as a completion or settlement.
Definition: closing statement A closing statement is a document used in real estate transaction, which details the fees, commissions, insurance,... read more →
Definition: co-borrower A co-borrower is any additional borrow whose name will appear on loan documents and whose income and credit... read more →
Definition: cash out refinance A cash out refinance is the replacement of your first mortgage, where the interest rate is... read more →
Definition: capital gains tax Capital gains tax is the amount of money taxed on a capital gain.
Definition: capital gains Capital gains are the profits from the sale of a property or an investment.
Definition: buyer's agent A buyer's agent is a person who represents a buyer when they purchase a home.
Definition: buydown A buydown is a mortgage-financing technique where the buyer tries to obtain a lower interest rate for at least... read more →
Definition: bridge loan A bridge loan is a sum of money lent by a bank to cover an interval between... read more →
Definition: balloon mortgage A balloon mortgage is a type of mortgage where a large portion of the borrowed principal is... read more →
Definition: assumable mortgage An assumable mortgage is a type of financing arrangement in which the outstanding mortgage and its terms... read more →
Definition: assessed value Assessed value is the dollar value assigned to a property to measure taxes.
Definition: asset appreciation Appreciation is the increase in value of an asset over time.
Definition: amortized cost Amortized cost is the portion of the recorded cost of a fixed asset that has been charged... read more →
Definition: amortization Amortization is the act of paying off of debt with a fixed repayment schedule in regular installments over... read more →
Definition: refinance To refinance is to take out a new loan on different terms, often to lower your payment, shorten... read more →
Definition: fixed-rate mortgage A fixed-rate mortgage is a fully amortizing loan, whose interest rate remains that same throughout the life... read more →
Definition: ARM (adjustable rate mortgage) An adjustable-rate mortgage is a mortgage type where the interest rate that is applied on... read more →
Definition: accrued interest Accrued interest is the interest on a bond or loan that has accumulated since the principal investment.
Definition: property and casualty insurance A large umbrella term that covers many forms of insurance. Property insurance protects owners in... read more →