| Adjustable-Rate Mortgage (ARM) | A mortgage with an interest rate that changes periodically, typically based on market conditions. Monthly payments may increase or decrease as the interest rate adjusts. | Loan Types |
| Amortization | The process of gradually paying off a loan over time through a series of scheduled payments. Each payment includes a portion of the principal and interest. An amortization schedule shows how each payment is divided over the loan term. | Payment Terms |
| Amount | The total money borrowed for a loan. This is the principal amount provided by the lender. | Loan Basics |
| Annual Percentage Rate (APR) | The yearly cost of a loan, expressed as a percentage. The APR includes the interest rate and any associated fees, giving borrowers a clear picture of the loan’s true cost. | Costs & Rates |
| Appraisal | A professional evaluation of a property’s market value, conducted by a licensed appraiser. Lenders typically require an appraisal before approving a mortgage. | Valuation |
| Appreciation | An increase in a property’s value over time, often due to market conditions or improvements to the property. | Valuation |
| Assets | Items of value owned by a person or entity, such as cash, real estate, or investments. Lenders review assets during the loan approval process. | Financial Position |
| Assumable Mortgage | A mortgage that allows a buyer to take over the seller’s existing loan and its terms. | Loan Types |
| Balloon Mortgage | A short-term mortgage requiring a large final payment, called a balloon payment, at the end of the loan term. | Loan Types |
| Balloon Payment | A significant lump-sum payment due at the end of a balloon mortgage. | Payment Terms |
| Bankrate | A financial website offering tools to compare loan rates, calculate payments, and provide guidance on mortgages and credit products. | Financial Tools |
| Borrower | The person or entity receiving a loan. The borrower is responsible for repaying the loan with interest. In legal terms, the borrower is the mortgagor. | Participants |
| Bridge Loan | A temporary loan used to cover the financial gap between purchasing a new property and selling an existing one. | Loan Types |
| Buy Down | An upfront payment made to reduce the interest rate on a loan. | Costs & Rates |
| Buyer’s Agent | A real estate professional representing the buyer in a property transaction. | Participants |
| Calculator | A tool for estimating financial figures related to loans, payments, and savings. Mortgage calculators help estimate monthly payments. | Tools |
| Capital Gains | The profit earned from selling a capital asset, such as real estate. | Finance Terms |
| Capital Gains Tax | Taxes applied to the profit from the sale of a capital asset like a home. | Finance Terms |
| Cash-Out Refinance | A refinancing option allowing homeowners to take cash out of their home equity while replacing their current mortgage. | Loan Types |
| Closing | The final step of a real estate transaction, where property ownership is officially transferred, and fees are paid. A closing agent oversees this process. | Real Estate Process |
| Closing Costs | Fees associated with completing a mortgage transaction, including appraisals, title insurance, and loan origination fees. These costs are detailed in the closing statement. | Real Estate Process |
| Co-Borrower | An additional person who shares responsibility for a loan with the primary borrower. | Loan Participants |
| Commitment Letter | A formal document from a lender outlining the terms of a mortgage loan. | Loan Documentation |
| Comparable Sales (Comps) | Recent sales of similar properties in the same area, used to determine a property’s market value. | Real Estate Valuation |
| Compare | Evaluating different loan options by reviewing rates, terms, and lenders to choose the best one. | Decision Tools |
| Construction Loan | A short-term loan that provides funding for building a new home. | Loan Types |
| Contingency | A clause in a real estate contract that makes the agreement dependent on specific conditions being met. | Real Estate Contracts |
| Conventional Loan | A mortgage not backed by the government. These loans may require higher credit scores and larger down payments. | Loan Types |
| Credit | The ability to borrow money or obtain goods and services with the promise of future repayment. | Finance Terms |
| Credit History | A record of a person’s borrowing and repayment behavior, used by lenders to evaluate creditworthiness. | Finance Terms |
| Credit Score | A numerical representation of creditworthiness, indicating a borrower’s ability to manage credit. | Finance Terms |
| Current Mortgage Rates | The interest rates currently available for home loans. | Mortgage Information |
| Debt-to-Income (DTI) Ratio | A percentage showing how much of a borrower’s gross monthly income goes toward debt payments. | Loan Eligibility |
| Deed | A legal document that transfers property ownership from the seller to the buyer. | Legal Documents |
| Defaults | Failure to make timely payments on a loan as agreed. | Loan Issues |
| Depreciation | A reduction in the value of property over time, often due to wear, age, or changes in market conditions. | Real Estate Valuation |
| Discount Points | Fees paid upfront by the borrower to reduce the loan’s interest rate. | Loan Costs |
| Down Payment | The initial cash payment made when purchasing a property. | Real Estate Process |
| Earnest Money | A deposit made by the buyer to show serious intent to purchase a property. | Real Estate Process |
| Equity | The portion of a property’s value that the owner owns outright. | Finance Terms |
| Escrow Account | An account held by the lender to pay property taxes and insurance premiums on behalf of the borrower. | Real Estate Process |
| Estate | The total property and assets owned by a person, including land, buildings, and other holdings. | Real Estate Valuation |
| Fair Market Value | The price a willing buyer would pay a willing seller in a fair transaction, with both parties being informed and not under pressure. | Real Estate Terminology |
| Federal Housing Administration (FHA) | A U.S. government agency that insures mortgages to make homeownership more accessible, especially for first-time buyers. | Loan Types |
| Federal Reserve | The central banking system of the United States, also known as the Fed. It sets interest rates, which directly impact mortgage rates. | Economic Factors |
| Fees | Additional charges associated with obtaining a loan, such as: Origination Fees: Charged by the lender for processing and underwriting the loan. Appraisal Fees: Paid for determining the property’s market value. | Loan Costs |
| FHA Loan | A government-backed loan insured by the FHA. These loans often have lower down payment requirements compared to conventional loans, making them suitable for low- to moderate-income buyers. | Loan Types |
| Fixed Rate | An interest rate that does not change during the life of the loan, ensuring consistent monthly payments. | Loan Features |
| Fixed-Rate Mortgage | A mortgage with an interest rate that remains constant for the loan term, resulting in stable monthly payments. | Loan Types |
| Flood Certification | A document identifying whether a property is in a federally designated flood zone. If so, flood insurance may be required by the lender. | Property Requirements |
| Foreclosure | A legal process in which a lender takes possession of a property when the borrower defaults on the mortgage. The property is then sold to recover the outstanding debt. | Loan Defaults |
| Good Faith Estimate (GFE) | A document required by the Real Estate Settlement Procedures Act (RESPA). It provides borrowers with an estimate of the closing costs they may incur. | Loan Process |
| Guidance Compare Lenders | Advice provided to help borrowers evaluate and choose between different lenders based on rates, terms, and services. | Loan Selection Guidance |
| Guidance Compare Rates | Information and tools that help borrowers understand and compare interest rates offered by various lenders. | Loan Selection Guidance |
| Hazard Insurance | Insurance that protects a property from damage caused by unexpected events, such as fires, theft, and natural disasters. | Insurance |
| Home | A residential property where a person resides. | General Terms |
| Home Buyers | Individuals or entities purchasing a home. | General Terms |
| Home Equity Loan | A loan where the borrower uses the equity in their home as collateral. | Loan Types |
| Home Inspection Contingency | A clause in a real estate purchase agreement that allows the buyer to cancel the deal if a home inspection reveals significant issues or required repairs. | Purchase Agreements |
| Home Insurance | Insurance providing financial protection for a property in case of damage. Lenders often require borrowers to maintain home insurance to safeguard the lender’s investment. | Insurance |
| Home Loan | A mortgage specifically used to purchase a residential property. | Loan Types |
| Home Refinance | The process of replacing an existing mortgage with a new one, often to secure a lower interest rate, change the loan term, or access home equity. | Loan Processes |
| Homeowner’s Association (HOA) | An organization within a community that manages shared spaces, enforces rules, and collects dues from property owners. | Community Management |
| House Flipping | The practice of purchasing a property, renovating it, and reselling it quickly for profit. | Investment Strategies |
| Housing Cooperative (Co-op) | A type of housing where residents own shares in a corporation that owns the building. Shareholders have the right to occupy specific units. | Housing Types |
| Income | Earnings from employment, investments, or rental properties. Lenders evaluate income to determine a borrower’s ability to repay a loan. | Borrower Evaluation |
| Interest | The cost of borrowing money, expressed as a percentage of the loan principal. | Loan Features |
| Interest Rate | The percentage charged by lenders for borrowing money. Rates may be fixed or variable based on market conditions. | Loan Features |
| Interest Rates | Percentages lenders charge on loans, significantly affecting the cost of borrowing. | Loan Features |
| Investment Property | Real estate purchased to generate income, either through rent or resale at a higher value. | Investment Strategies |
| Joint Tenancy | A form of property ownership where two or more individuals share equal ownership rights. If one owner passes away, their share automatically transfers to the surviving owner(s). | Property Ownership |
| Jumbo Loan | A mortgage that exceeds the Federal Housing Finance Agency’s (FHFA) conforming loan limits. Jumbo loans often have stricter requirements, such as higher credit scores and larger down payments. | Loan Types |
| Lender | A financial institution or individual providing loans. Examples include banks, credit unions, and mortgage companies. | Loan Participants |
| Lien | A legal claim on a property to secure payment of a debt. | Legal Terms |
| LLC (Limited Liability Company) | A business structure offering limited liability protection to its owners. LLCs are often used for owning and managing real estate. | Business Structures |
| Loan | Borrowed money that must be repaid, typically with interest. | General Terms |
| Loan Amount | The total amount borrowed from a lender. | Loan Features |
| Loan Modification | Changes made to the original terms of a loan, such as adjusting the interest rate, extending the loan term, or switching the loan type. | Loan Processes |
| Loan Servicing | The management of a loan after it has been issued, including collecting payments and maintaining escrow accounts. | Loan Processes |
| Market | The environment where buyers and sellers exchange goods and services. The real estate market involves buying and selling properties. | Economic Factors |
| Maturity Date | The date when the full balance of a loan is due to be repaid. | Loan Features |
| Money | Currency used for transactions, including loan payments. | General Terms |
| Monthly Mortgage Payment | The amount a borrower pays each month to repay a mortgage. This usually includes principal, interest, property taxes, and insurance. | Loan Features |
| Monthly Payments | Regular payments made to repay a loan, typically due every month. | Loan Features |
| Mortgage | A loan used to purchase real estate, with the property serving as collateral. If the borrower defaults, the lender can seize the property. | Loan Types |
| Mortgage Agreement | A legal contract between a borrower and lender outlining the terms of a mortgage loan. | Legal Terms |
| Mortgage Broker | A professional who connects borrowers with lenders, helping them find suitable loan options. | Loan Participants |
| Mortgage Calculator | An online tool for estimating monthly mortgage payments based on loan amount, interest rate, and term. | Financial Tools |
| Mortgage Insurance | Insurance that protects the lender if a borrower defaults. | Loan Features |
| Mortgage Insurance Premium (MIP) | Charged on FHA loans to protect the lender. | Loan Features |
| Mortgage Lender | An institution that provides mortgage loans, such as banks or credit unions. | Loan Participants |
| Mortgage Life Cycle | The stages of a mortgage, from origination to repayment or payoff. | Loan Processes |
| Mortgage Loan | A loan specifically for purchasing real estate, using the property as collateral. | Loan Types |
| Mortgage Payment | The monthly payment a borrower makes to repay a mortgage, including principal, interest, taxes, and insurance. | Loan Features |
| Mortgage Rate | The interest rate applied to a mortgage loan. | Loan Features |
| Mortgage Rates | The interest rates associated with mortgage loans, influenced by market conditions and borrower qualifications. | Loan Features |
| Mortgage-Backed Securities | Investments backed by a pool of mortgages. | Investment Instruments |
| Multiple Listing Service (MLS) | A database used by real estate professionals to share property listings and details. | Real Estate Tools |
| NMLS Consumer Access | A public database maintained by the Nationwide Mortgage Licensing System and Registry (NMLS), allowing individuals to verify the licenses of mortgage professionals. | Loan Tools |
| No-Cost Closing | A mortgage where the lender covers some or all closing costs, typically in exchange for a slightly higher interest rate. | Loan Features |
| Notice of Default | A formal notification sent to a borrower who is delinquent on mortgage payments, warning of potential foreclosure. | Legal Terms |
| Offer | A proposal made by a buyer to purchase a property at a specific price and under specific terms. | Real Estate Processes |
| Origination Fees | Charges by a lender to process a loan application, covering underwriting and loan origination costs. | Loan Costs |
| Payment | Money paid by a borrower to repay a loan, including principal and interest. | Loan Features |
| Payment Cap | A limit on how much monthly payments can increase for an adjustable-rate mortgage (ARM). | Loan Features |
| Percent | A fraction of one hundred, commonly used to express interest rates and financial figures. | General Terms |
| Personal Loans | Unsecured loans used for personal expenses, usually with fixed rates and terms. | Loan Types |
| Piggyback Loan | A second mortgage taken simultaneously with a first mortgage to avoid private mortgage insurance (PMI). | Loan Types |
| Portable Mortgage | A mortgage transferable from one property to another without a new loan application process. | Loan Features |
| Power of Attorney | A legal document granting someone the authority to act on another’s behalf in financial or legal matters. | Legal Terms |
| Pre-Approval | A preliminary lender assessment indicating the loan amount a borrower may qualify for, based on financial and credit information. | Loan Processes |
| Prepayment Penalty | A fee charged by some lenders if a borrower pays off their mortgage early. | Loan Costs |
| Primary Mortgage Market | The financial market where lenders issue loans directly to borrowers. | Financial Markets |
| Primary Residence | The home where a person lives most of the time. | Real Estate Terms |
| Prime Loan | A loan for borrowers with strong credit and a low risk of default. | Loan Types |
| Principal | The original loan amount, excluding interest and other charges. | Loan Features |
| Private Mortgage Insurance (PMI) | Required for conventional loans with low down payments. | Loan Features |
| Private Mortgage Insurance (PMI) | Insurance required for conventional loans with down payments below 20%, protecting the lender in case of default. | Loan Features |
| Process | The steps involved in securing a mortgage, varying by loan type and lender. | Loan Processes |
| Property | Land, buildings, and related assets financed through mortgages. Property taxes are part of homeownership costs. | Real Estate Terms |
| Property Taxes | Local government-imposed taxes on property, based on assessed value, often included in monthly mortgage payments. | Real Estate Costs |
| Quitclaim Deed | A deed transferring ownership without guarantees or warranties of clear title. | Legal Terms |
| Rate | The cost of borrowing money, expressed as a percentage, influenced by market conditions and borrower creditworthiness. | Loan Features |
| Rate Lock | An agreement securing a specific interest rate for a set period, protecting borrowers from rate increases before closing. | Loan Features |
| Rates | Interest percentages applied to loans, influencing the overall cost of borrowing. | Loan Features |
| Real Estate | Land, buildings, and natural resources involved in property transactions. | Real Estate Terms |
| Real Estate Agent | A licensed professional assisting in buying and selling properties. A Realtor is a real estate agent who is a National Association of Realtors (NAR) member. | Real Estate Professionals |
| Real Estate LLC | An LLC created to own and manage real estate assets, offering legal and financial protection. | Business Structures |
| Real Estate Owned (REO) | Properties owned by lenders after foreclosure, often sold to recoup losses. | Real Estate Terms |
| Realtor | A licensed real estate agent who is a member of the National Association of Realtors (NAR), bound by a specific code of ethics. | Real Estate Professionals |
| Reconveyance Deed | A legal document transferring ownership back to the borrower after a mortgage is paid in full. | Legal Terms |
| Refinance | Replacing an existing mortgage with a new one, often to lower the interest rate, change the term, or access home equity. A cash-out refinance provides cash from home equity. | Loan Processes |
| Rocket | Refers to Rocket Mortgage, an online lender streamlining mortgage applications. Rocket Homes connects buyers and sellers. | Loan Tools |
| Score | A borrower’s credit score, critical in determining loan eligibility and interest rates. | Financial Factors |
| Second Mortgages | Subordinate loans taken on a property with an existing mortgage, repaid after the first mortgage in foreclosure. | Loan Types |
| Short Sale | Selling a property for less than the mortgage balance, typically to avoid foreclosure, with lender approval required. | Real Estate Processes |
| Speculative Home Market | A market driven by investors buying properties expecting rapid appreciation for resale profits. | Real Estate Terms |
| Subprime Loan | Loans for borrowers with poor credit, carrying higher interest rates and less favorable terms. | Loan Types |
| Survey | A professional measurement of property boundaries, establishing precise property lines. | Real Estate Processes |
| Tenancy in Common | Property ownership shared by two or more people, with shares that can be passed to heirs. | Property Ownership |
| Term | The loan repayment period, such as a 30-year mortgage. | Loan Features |
| Title Search | A review of public records to ensure clear property ownership and identify liens. | Real Estate Processes |
| Type | The category of mortgage or loan, such as fixed-rate, adjustable-rate, or jumbo loans. | Loan Types |
| Underwriting | The lender’s process to evaluate a borrower’s risk, including income, credit history, and loan eligibility. | Loan Processes |
| USDA Loans | Government-backed loans from the U.S. Department of Agriculture for eligible rural homebuyers. | Loan Types |
| VA Loans | Mortgages for eligible veterans and military personnel, guaranteed by the Department of Veterans Affairs, often with no down payment. | Loan Types |
| Warranty Deed | A deed guaranteeing the seller has clear title and the legal right to sell the property. | Legal Terms |
