FHA Mortgage— A mortgage loan insured by the Federal Housing Administration, permitting lenders to offer better terms.
Fixed Rate Mortgage— A loan that has only one stated interest rate.
Hybrid loans— Loans that combine features of fixed-rate and adjustable-rate mortgages.
HUD— Housing and Urban Development— A U.S. government agency established to implement certain federal housing and community development programs.
Lien— A legal claim against a property that must be paid when property is sold.
Loan Origination Fee— The charge you must pay to the lender for processing your mortgage.
Market Value— The highest price a ready, willing and able buyer will pay and the lowest price a seller will accept.
Mortgage— A lien on real estate given by the buyer as security for money borrowed from a lender.
Mortgage Insurance— A policy that provides protection for the lender in case of default and guarantees repayment of the loan in the event of death or disability or the borrower.
Mortgage Insurance Premium— A charge paid by the borrower (usually as part of the closing costs) to obtain financing, especially when making a down payment of less than 20% of the purchase price, for example on an FHA-insured loan.
MLS— Multiple Listing Service.
Points— A dollar amount, expressed as a percentage of the mortgage amount, which is paid to a lender as a consideration for making a loan. A point is 1% of the amount of the mortgage loan; also called discount points.
P&I— Principal and Interest Payment— A periodic (usually monthly payment) that includes the interest charges for the period plus an amount applied to amortization of the principal balance.
PITI— Principal, Interest, Taxes and Insurance Payment— The periodic payment that includes the principal and interest payment plus a contribution to the escrow account set up by the lender to pay insurance premiums and property taxes on the mortgage property.
Property Taxes— Taxes (based on the assessed value of the home) paid by the homeowner for community services such as schools, public works, and other costs of local government.
REALTOR® and REALTOR ASSOCIATE®— Registered collective membership marks that identify real estate professionals who are members of the National Association of REALTORS and subscribe to its strict Code of Ethics.
Title— A document that is evidence of ownership.
Title Insurance— Protection for lenders and homeowners against financial loss resulting from legal defects in the title.
Title Search - A check of title records to identify liens, encumbrances and ownership rights to the property.
VA Mortgage— A mortgage loan guaranteed by the Veterans Administration, an agency of the federal government that provides services for eligible veterans.