ADJUSTABLE-RATE MORTGAGE (ARM)
A mortgage that permits the lender to adjust the interest rate periodically
on the basis of changes in a specified index.
A timetable schedule showing the amount of each payment applied
to interest and principal and the remaining balance after each payment
ANNUAL PERCENTAGE RATE (APR)
The cost of a mortgage stated as a yearly rate including such items
as interest, mortgage, and loan origination fees or points.
A written analysis of the estimated value of a property prepared
by a qualified appraiser.
BIWEEKLY PAYMENT MORTGAGE
A mortgage requiring payments every two weeks instead of the standard
monthly payment. The result for the borrower is a substantial savings
A person who, for a commission or a fee, brings parties together
and assists in negotiating contracts between them.
CERTIFICATE OF TITLE
A statement provided by an abstract company title or attorney stating
that the title to real estate is legally held by the owner.
A meeting at which a sale of a property is finalized by the buyer
signing the mortgage documents and paying the closing costs.
An asset that guarantees the repayment of a loan. For example, a
car or a home.
The fee charged by a broker or agent for providing services related
to a real estate transaction such as procuring the property, bringing
the parties together and negotiating a purchase contract or loan.
The legal document conveying title to a property.
EARNEST MONEY DEPOSIT
A deposit made by the potential home buyer to show that he or she
is serious about buying the house.
A homeowner's financial interest in a property. The difference between
the market value of a property minus all liabilities owed on the
A written contract that gives a licensed real estate agent the exclusive
right to sell a property for a specified time, but reserving the
owner's right to sell the property himself without the payment of
FAIR CREDIT REPORTING ACT
A consumer protection law that regulates the disclosure of consumer
reports by consumer/credit reporting agencies and establishes procedures
for correcting mistakes on one's credit record.
A thorough inspection that evaluates the structural and mechanical
condition of a property.
The legal claim against a property that must be satisfied before
the property may be sold.
A written agreement in which the lender guarantees a specified interest
rate if a mortgage goes to closing within a set period of time.
A legal document that pledges a property to the lender as security
for payment of a debt.
A contract that insures the lender against loss caused by a mortgagor's
default on a government mortgage or conventional mortgage.
The value of all of a person's assets, including cash, minus all
The interest that banks charge to their preferred customers.
The amount borrowed or remaining unpaid.
REAL ESTATE AGENT
A person licensed to negotiate and transact the sale of real estate
on behalf of the property owner.
A registered collective membership mark which identifies real estate
professionals who are members of the National Association Of Realtors®
and subscribe to its strict Code of Ethics.
A drawing or map showing the precise legal boundaries of a property,
the location of improvements, easements, rights of way, encroachment,
and other physical features.
A check of the title records to ensure that the seller is the legal
owner of the property and that there are no liens or other claims
TRUTH IN LENDING
A federal law that requires lenders to fully disclose, in writing,
the terms and conditions of a mortgage, including the annual percentage
rate and other changes.
The process of evaluating a loan application to determine the risk
involved for the lender.