HSH Mortgage Terms Glossary A-Z

A public record showing a condensed title history of the property.

A provision which requires that the remaining balance due on the mortgage be paid if the borrower defaults on the loan or transfers title to another party.

A mortgage with an interest rate that changes periodically, according to an "index", such as Treasury Bills. Monthly payments can go up or down when the rate is adjusted.

The date that an ARMs interest rate is changed.

The process of paying off the debt or mortgage, usually by equal monthly payments. Monthly payments are mostly interest at first (because the debt is higher) and almost entirely principal in later years, when the loan balance is small.

A table which shows the distribution of monthly payments - how much will be applied toward principal and how much toward interest over the life of the loan.

A figure which attempts to reflect the total cost of a loan, expressed as a yearly rate. Because the APR takes the total cost of credit into account, it can never be lower, and is almost higher than the stated note rate or advertised rate. Within reason, the APR allows you to compare different types of mortgages based on the total cost.

The standard form used to apply for a mortgage. The standard form used to apply for a mortgage. The form includes borrower declarations regarding income, savings, assets, debts, and more. See Uniform Residential Loan Application

A written justification of value of a property, usually based on an analysis of the price paid for similar properties in the area.

An opinion of the fair value of a property, generally by a qualified and/or licensed professional appraiser.

The increase in the value of a property over time, usually due to changes in market conditions, inflation, or improvements.

See Annual Percentage Rate (APR)

See Adjustable Rate Mortgage (ARM)

The valuation placed on property for the purpose fixing the amount property taxes.

The process of setting the value of a property for tax purposes.

Personal and Real property: items of value which can be quickly converted into cash. Bank accounts, stocks, bonds, mutual funds, real estate, personal property, etc.

Transfer of ownership from one individual or company to another. Lenders often assign mortgages which they make to Fannie Mae or other entity which specializes in buying mortgages.

A mortgage which can be assumed by the buyer when a home is sold. Available on FHA and VA-backed loans, but uncommon in the conventional loan market.

The process of assuming a mortgage. See Assumable Mortgage.

A fixed rate mortgage with monthly payments which are not large enough to pay off the loan during the term. Balloons end after a specific time, usually one to five years, after which the entire remaining balance must be paid in a lump sum.

The final lump sum payment due at the end of a balloon mortgage.

See Two Step Mortgage (Balloon Reset)

1/100th of a point. See Point

A written document which transfers titles to personal property, such as an automobile or other valuable property.

A mortgage with payments made every two weeks instead of monthly. Since a bi-weekly mortgage has 26 payments per year -- the equivalent of 13 monthly payments -- the loan is paid off much sooner typically 5-8 sooner as opposed to monthly payments for 30 years. Term shortening depends on the loan's interest rate; the early payoff saves substantial amounts of interest.

A loan used (usually) to finance the down payment on a new home before the previous property is sold. Previously commonly available, bridge loans are hard to find and are expensive.

A person or company that, for a specified fee, provides a service. Real estate brokers bring together buyers and sellers and then facilitate the transaction. Note: most real estate brokers represent the seller, NOT the buyer. Mortgage brokers are individuals or companies which arrange financing but do not lend money directly.

A provision where someone, usually the builder or seller, subsides the mortgage, either by paying extra points (a permanent buydown) or by setting up an escrow account with funds to subsidize the loan during the first few years. The effect is to lower the interest rate for some period of time, which in turn allows the borrower to qualify. The reduced monthly payments increase when the subsidy expires.

Caps are limits on the amount that the interest rate on an Adjustable Rate Mortgage can change at any one adjustment and (usually) over the life of the loan. They protect the borrower from huge increases in the monthly payment in a rising interest rate environment. Rarely, a cap may apply to the payment amount rather than to the rate. Under certain conditions, payment caps can cause the loan balance to increase rather than decrease. See Negative Amortization

The process of refinancing to an amount higher than the balance due o the existing loan, drawing equity out of the property.

A document required for a VA guaranteed loan. It is obtained through any local VA office on presentation of a DD-214 Separation Paper.

Used for VA loans only, a certificate issued by the Veterans Administration verifying the appraisal.

A meeting between the buyer, seller, and lender where the property and funds legally change hands. Called a Settlement in some states.

The total costs and fees associated with closing. Includes one-time non-recurring fees and charges for inspections and other services, and (usually) initial escrows for recurring costs such as property taxes and insurance.

A document provided to the borrower three days before closing; details final mortgage loan fees and charges. Replaced HUD-1 Settlement Statement. See also Settlement Statement

A conventional mortgage which "conforms" to standards set by Fannie Mae and Freddie Mac. These include loan types and terms, maximum loan limits, borrower credit standards, loan-to-value and debt-to-income ratios, private mortgage insurance requirements and other facets of a mortgage loan. These standards help allow mortgages to be more easily securitized and sold to investors.

An independent bureau within the Federal Reserve System that oversees consumer finance markets. Created to provide a single authority for enforcing federal consumer financial laws and protecting consumers in the financial marketplace. Consolidated the oversight functions of several agencies and regulatory authorities.

An index that was used on some Adjustable Rate Mortgages (ARMs). Discontinued by the Federal Reserve on December 16, 2013.

An index produced by the 11th District Federal Home Loan Bank. One of several indexes used to set interest rate changes for certain monthly Adjustable-Rate Mortgages. The 11th District COFI was discontinued by the Federal Home Loan Bank of San Francisco on January 21, 2022.

An asset used to secure a loan. It can be seized by a lender if the borrower defaults.

The semi-formal process used by lenders in contacting borrowers in an effort to bring a loan current. In the case of a mortgage, the mailing and formal recording of certain documents which may be required to foreclose on a property.

The fee paid to brokers, attorneys, and others for their services.

A promise by a lender to make a loan within a specified time period, subject to compliance with stated conditions. The lender's obligation expires if the borrower does not close the loan prior to the expiration date of the commitment.

Those portions of a building, land, and amenities in condominium and cooperative projects which are used the apartment owners. The hallways, parking areas, and other amenities.

Fees paid (usually) to an Owners Association Fees by the owners of the individual units in a condominium or cooperative which are used to maintain the property and common areas.

A series of low-income loan programs offered under Fannie Mae and Freddie Mac auspices. These generally require only 3 - 5% down but do require PMI (Private Mortgage Insurance).

Recent sales of similar properties in the area. Used as a measure local market value to help set the current value of a property.

A form of ownership in real property where the owners have title to only the interior of an apartment or townhouse. The common areas and the building exteriors are owned jointly. All owners have general rights to common areas and amenities.

Usually refers to the process of converting a property from rental to either a condominium or cooperative property. Tenants generally have a first right of purchase for the unit they occupy.

A loan used to finance construction of a new home and, sometimes, the land for a home. Depending on local custom, a construction loan may a permanent mortgage with funds disbursed as construction proceeds, or may be a short-term loan that must be repaid on completion.

A condition which must be met before a contract is binding. For example, a requirement that an existing lien on the property must be cleared by a certain date.

A loose term which generally refers to a mortgage loan not directly backed by FHA, VA or USDA. Conforming mortgages are more formally known as conventional conforming loans.

An Adjustable-Rate mortgage with a borrower's option to convert to a fixed-rate mortgage under specified conditions. Once very common, these are rare today.

A form of ownership in which the residents own shares in a corporation which owns the entire property. Shareholders are entitled to occupy a specific apartment and to have use of the common areas.

An index used on Adjustable Rate Mortgages (ARMs) serviced by Wells Fargo Bank, which acquired the assets and loans of Wachovia Savings, which previously absorbed World Savings, the originator of the index .

A report of an individual's credit history used by lenders to determine credit risk. A record of an individual's repayment of debt.

See Certificate of Reasonable Value (CRV)

An obligation, Specifically, the amount owed.

Total outstanding debt as a portion of total income. Used by lenders as a measure of credit worthiness.

The legal document which certifies title to a property.

A means of avoiding foreclosure by conveying the title of the property to the lender. The lender has the option of whether to accept a deed-in-lieu, to proceed with the foreclosure, or both.

Used in place of a mortgage in some states. The deed to a property is held by a trustee (title company or other third party) with the condition that it will be conveyed to the borrower when the mortgage is paid off.

Failure to make payments within a specified period of time. A finding made by a lender prior to beginning foreclosure proceedings.

Failure to make mortgage payments when they are due. Policies vary from lender to lender but a borrower is generally reported delinquent if a payment is more than 30 days late.

A decline in the value of property; the opposite of appreciation.

A prepayment of interest equal to 1% of the mortgage amount. See Point, Origination Fee

A part of the purchase price, paid in cash, to cover the difference between the purchase price and the loan amount. Typically between 5% and 20% but can be more or less.

A provision which requires that the remaining balance due be paid if the borrower sells the property or transfers title to another party.

A deposit made by the potential home buyer which restrains the seller from offering the property to another party for a specified period.

A right of way allowing access to or over a property for a specific purpose, such as for a power line, or a road for access to another property.

The right of a government to take private property for public use upon payment of its fair market value. Eminent domain is the basis for condemnation proceedings.

An illegal intrusion on another property by a fence, structure, etc.

Anything that affects or limits the title to a property, such as a lien or mortgage, easement, or a lease or other restriction.

The difference between the fair market value of a property and any lien or mortgage. The net amount the owner would realize if the property were sold.

Funds deposited with a third party to be delivered upon the fulfillment of a condition. A special account created to hold money for taxes and insurance, or to hold deposit money prior to closing.

An account created for a specific purpose, such as to hold money for taxes and insurance, or to hold deposit money prior to closing.

The total of all the real property and personal property owned by an individual at time of death.

A legal proceeding to expel an occupant from a property.

An abstract of report on the title of a property, taken from public records.

The highest price for a property that a willing buyer would pay, and the lowest price a willing seller would accept.

The Federal National Mortgage Association (FNMA). Known as a Government Sponsored Enterprise (GSE) this private corporation purchases mortgages from lenders that meet certain conditions (aka "conforming loans"). In government conservatorship since September 2008. Regulated by the Federal Housing Finance Agency (FHFA). Also see Freddie Mac (FHLMC)

A division of the Department of Housing and Urban Development. Runs a self insurance pool that indemnifies lenders against the risks of making loans to borrowers with lesser credit or small down payments. Also insures Home Equity Conversion Mortgages (reverse mortgages) for senior homeowners looking to utilize the equity in their homes. See also FHA mortgage

The primary regulator for Fannie Mae and Freddie Mac and the eleven Federal Home Loan Banks. Primarily concerned that these entities operate in a safe and sound manner and are a reliable source of liquidity and funding for the housing market.

Absolute title; the highest possible interest in a property.

A mortgage insured by the Federal Housing Administration. Backed by an insurance pool, FHA mortgages require somewhat lower down payments and have less stringent qualification requirements. To help protect lenders against risk, FHA borrowers pay both an upfront and recurring Mortgage Insurance Premiums.

A measurement of an individual's credit score as calculated by Fair, Isaac and Company (FICO). FICO scores range from 300 to 850; mortgage lenders typically require a FICO 620 or above before they will make a mortgage to a borrower.

A loan used to finance the purchase of a home. The primary lien against a property.

See Deed Of Trust

A mortgage with an interest rate that remains constant for the life of the loan. The rate is set when the loan is made and never changes. Also see Balloon Mortgage

Insurance against damage from flooding. A specialized insurance most commonly backed by the Federal Government (called the National Flood Insurance Program) which must be purchased separately for properties at risk.

The legal process used to regain title to a mortgaged property if the borrower defaults. Foreclosure usually involves a forced sale of the property with the proceeds being applied to the mortgage balance.

Federal Home Loan Mortgage Corporation. Known as a Government Sponsored Enterprise (GSE) this private corporation purchases mortgages from lenders that meet certain conditions (aka "conforming loans"). In government conservatorship since September 2008. Regulated by the Federal Housing Finance Agency (FHFA).See also Fannie Mae (FNMA).

See Fixed Rate Mortgage

Government National Mortgage Association. A federally owned corporation which funds FHA and VA loans. GNMA performs the same role as Fannie Mae and Freddie Mac in providing funds to lenders for making home loans.

Formally "Good Faith Estimate of Closing Costs" and also known as a GFE, this document was the formal estimate of the fees and charges which the borrower must pay at the loan's closing. Lenders were required to provide a Good Faith Estimate at the time the commitment is issued. The GFE was been superseded by a new "Loan Estimate" form.

The person or entity to whom an interest in real property is conveyed.

The person or entity conveying an interest in real property.

Insurance to protect the homeowner AND the lender against physical damage to a property from fire, windstorm, vandalism, and other specified hazards. Also see Flood Insurance, Homeowner's Policy

Literally, a Reverse Mortgage, which allows (usually) elderly homeowners who have a substantial equity to convert the equity into cash. A lender makes regular payments to the homeowner, with a corresponding lien building against the property. The loan must be repaid at a specified time or when the borrower no longer occupies the property.

A variable rate line of credit secured by a homeowner's equity. The lender provides funds on demand, with a corresponding lien against the property. The loan must be repaid in installments after a specified draw period.

A standardized form of insurance providing blanket coverage against personal liability and a wide variety of hazards. Homeowner's policies do NOT include flood insurance, and may also specify additional exemptions.

Superseded by a Closing Disclosure document, the HUD-1 Settlement Statement detailed tot he borrower the actual final loan terms and costs and fees they paid to obtain the mortgage. See also Settlement Statement and Closing Disclosure.

An economic indicator that is used to determine changes in the interest rate of an Adjustable Rate Mortgage. U.S. Treasury bills and notes are the most common but there are others used to govern mortgages. The rate is periodically adjusted to the index value plus a margin.

The charge paid for borrowing money.

See Construction Loan

The actual source of money for the mortgage.

Joint ownership by two or more persons such as husband and wife, business partners, etc. Each person has equal rights to the property and ownership passes to the survivor in the event of death.

A mortgage for an amount greater than the amount eligible for purchase by Fannie Mae or Freddie Mac. These are most often mage by lenders who can hold the loans in their portfolio. See Non Conforming Loan

A mortgage offering a discounted interest rate at the beginning of the loan that gradually increases during the first few years of the loan. Also called a "2-1 buydown" or "3-2-1 buydown" It provides lower initial payments and a stable final monthly rate, but the final rate may be somewhat higher than on a standard fixed rate mortgage. See Buydown

Insurance protection against claims alleging negligence or an action which resulted in bodily injury or property damage to another party. It is included in most homeowner's policies.

A legal claim against a property, such as a mortgage or a workman's claim. In general, liens must be paid off prior to title transfer.

For an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease over the life of the mortgage.

An agreement to extend credit to a borrower under specified conditions. See Home Equity Line Of Credit (HELOC)

A sum of borrowed money (principal) that is generally repaid with interest.

Document provided to borrower within three days of the placing of a mortgage loan application; details expected loan fees and terms. Replaced Good Faith Estimate of Closing Costs (GFE) disclosure.

The process of collecting and managing monthly payments. Often a separate company, a loan servicer processes the payments, sends statements, manages the escrow/impound accounts and makes sure that taxes and insurance premiums made on time.

See Origination Fee

The percentage relationship between the amount of the loan and the appraised value or sales price, whichever is lower.

Also called "Rate Lock", an agreement in which the lender guarantees a specified interest rate for a certain amount of time. Extended lock in periods usually incur an additional fee.

See Loan To Value (LTV) Ratio

The percentage amount added to the Index value to establish the new interest rate at each adjustment. The margin remains constant over the life of the loan.

The highest price that a motivated buyer would pay, and the lowest price that a motivated seller would accept on a property. Market value is not necessarily the price that a property could actually be sold for at a given time.

The date on which the remaining balance of a loan financial instrument becomes due and payable. The date the mortgage must be paid off.

A formal recorded claim against a property for work and materials for construction or repair of a property. Mechanic's liens attach to both the building(s) and land.

Also called "Loan Modification", a change in the terms of a mortgage without refinancing. Usually, a reduction in the interest rate or other change that is beneficial to the borrower.

A formal document pledging a property as security for a loan. Not used in all states - see Deed of Trust

A company or individual that originates and funds mortgages, which are then sold in the secondary market.

A independent company or individual that originates but does not fund mortgages. A mortgage broker arranges mortgages with a variety of institutions with which they have pre-established relationships.

The lender in a mortgage agreement.

Insurance purchased by the borrower to partially protect the lender against loss if the borrower defaults. Normally required for loans with an LTV greater than 80% (less than 20% down). FHA loans and most first buyer programs require mortgage insurance regardless of the LTV. Insurance purchased for non-FHA loans is commonly called Private Mortgage Insurance or PMI. Some large lenders may self-insure and do not require the buyer to purchase PMI in exchange for a slightly higher interest rate. Normally, private mortgage insurance may be canceled when the LTV drops below 80%.

The premium paid by a borrower either to FHA (FHA/VA loans) or to a private company for non-government insured loans. FHA loans have both an upfront and recurring mortgage insurance premiums. VA-backed loans have an initial funding fee but no recurring MI premiums.

Also known as "Credit Life Insurance", a form of insurance policy where the insurance amount decreases in lock step with the remaining loan balance, and pays off the mortgage should the borrower become deceased. It is not usually required by lenders and is relatively expensive and is different than Private Mortgage Insurance (PMI).

The borrower in a mortgage agreement.

An ARM index known as the Moving Treasury Average, with values derived from the monthly average of the one-year Treasury Constant Maturity. Also known as "12-MAT".

A condition where the loan balance goes up, rather than down, as payments are made. If a payment is not large enough to cover the interest due the difference is added to the principal. Negative amortization can occur in certain types of adjustable rate mortgages, but is disallowed for loans that meet Qualified Mortgage (QM) standards.

A mortgage refinance with no out-of-pocket expenditure. The loan fees and charges may be added onto the mortgage amount or traded off in exchange for a higher-than-market interest rate on the loan.

A mortgage which does not conform to credit or other standards, or to the maximum loan limits set by Fannie Mae and Freddie Mac. See Jumbo Loan

A signed, formal document obligating a borrower to repay a loan at a stated interest rate during a specified period of time.

The stated interest rate on a mortgage or other loan agreement.

The process of making a loan; the sequence of steps needed to document borrower assets and credit, property appraisal, and so on.

A fee charged by a lender to cover certain expenses associated with the loan origination. Usually stated as a percentage of the face value of the loan (points).

The wall between two adjoining properties, such as between apartments in a condominium.

A test to determine soil seepage capacity for properties where a septic tank is in use or being considered.

A mortgage which replaces a construction loan after construction is complete.

See Caps

In most states, any property that is not real property. (Definitions vary.) See Real Property

Principal, Interest, Taxes and Insurance. The four components that (for most homeowners) make up the monthly mortgage payment. Principal and interest are the portions of the payment assigned to repay the mortgage; the tax and insurance components are accumulated in an escrow account to make payments when they are due.

A cash amount that a borrower must have on hand after making a down payment and paying all closing costs for the purchase of a home. The principal, interest, taxes, and insurance (PITI) reserves must equal the amount that the borrower would have to pay for PITI for a predefined number of months.

A type of ownership with privately owned lots and buildings, and jointly owned common areas and facilities.

A point is equal to 1 percent of the mortgage. One point on a $100,000 mortgage would be $1,000, for example. Discount points are simply interest that is paid up-front. Most lenders offer mortgages with several combinations of points and interest rates; generally, more points means a lower interest rate, less points means a higher rate.

An approval for credit issued by a lender after the borrower has applied for a mortgage but before the borrower has selected a property to purchase. Usually issued for a stated maximum loan amount under certain conditions and assumptions regarding interest rates and other factors. Also known as a conditional commitment.

Any amount paid in excess of the required principal payment in order to reduce the principal balance of a loan more quickly than the terms of the loan require. Prepayments can be one time, irregular or recurring or may take the form of a rounded-up payment or biweekly payment plans.

A fee that may be charged to a borrower who pays off a loan before it is due.

Usually, a written opinion of the ability of a borrower to qualify for a home loan.

The rate charged by banks to their preferred customers. Often used as the index for Home Equity Credit Lines, Construction and commercial loans but only rarely for first mortgages.

The amount of debt, not including interest, left on a loan; the total amount of a loan before any payments are made.

The remaining balance on a mortgage. The principal balance does not include interest or any other charges.

Insurance purchased by the borrower to partially protect the lender against loss if the borrower defaults. Normally required for conventional loans with an LTV greater than 80% (less than 20% down). Normally, private mortgage insurance may be canceled when the LTV drops below 80%. See also Mortgage Insurance.

A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.

A mortgage used for the acquisition of a property.

See Planned Unit Development (PUD)

A set of mortgage standards outlined in the Dodd-Frank regulations that govern interest rates, fees and terms for certain residential mortgages. Coupled with Ability-to-Repay standards, QMs are mortgages that lack or restrict certain risky features and can help indemnify a lender against certain legal actions by borrowers.

Ratios of debt to income which are used to determine how much of a borrower's income can be used to cover principal, interest, tax and insurance costs and all other debts when purchasing a home or refinancing a mortgage. There are so-called "front end" ratios that determine how much of a borrower's Monthly Gross Income can be used for Principal and Interest payments and a second ("back-end") ratio that caps the total tax, insurance and other debts the borrower's MGI will be allowed to support.

A deed that transfers all interest or title, if any, that a grantor may have at the time the conveyance is made. No warranty is made.

A commitment issued by a lender to a borrower guaranteeing a specified interest rate for a specified period of time at a specific cost. Extended lock in periods usually incur an additional fee.

A person licensed to negotiate and transact the sale of real estate.

A set of law and corresponding consumer protection regulations which specifies the type and timing of disclosures that must be provided to the borrower and what these documents must contain, and governs the activities and business practices of parties involved in a real estate transaction.

Land and all that attached with it, such as buildings, trees, minerals, easements, rights of way, all items of a permanent nature.

A real estate agent who is an member of the National Association of Realtors

A registration of the details of a properly executed legal document, such as a deed, mortgage, satisfaction of mortgage, etc., thus making it a part of the public record.

The process of paying off one loan with the proceeds from a new loan using the same property as security, commonly for the purpose of obtaining a lower interest rate, changing the loan terms or converting accumulated equity into cash.

The amount of principal that has not yet been repaid. See Principal Balance

The original amortization term less the number of payments that have been applied. The number of payments yet to be made.

Money accumulated in an escrow account to replace common property (roofing, heating unit, etc.)in a condominium, or cooperative.

A specific kind of mortgage that allows a senior homeowner to extract equity in a number of ways, either by lump sum, permanent or termed annuity or other means without the need to make repayments any funds that are advanced. The most common is the FHA-backed Home Equity Conversion Mortgage (HECM), but there are also proprietary reverse mortgages (sometimes called "jumbo reverse mortgages") too. See also Home Equity Conversion Mortgage

A credit arrangement, such as a credit card, that allows a customer to borrow against a preapproved line of credit when purchasing goods and services. The borrower is billed for the amount that is actually borrowed plus any interest due.

A provision in an agreement that requires the owner of a property to offer the first opportunity to purchase a property before it is offered for sale to others.

An easement providing access to an adjoining property. See Easement

In current usage, the conversion of a construction loan to the permanent financing when construction is complete.

An instrument provided by the lender as evidence that the loan has been paid off and the lien is satisfied. It may be up to the borrower to record the document to remove the lien from the public record.

A loan in a second lien position on a property. Often the common description for a fixed-rate home equity loan, but also applies to variable-rate home equity lines of credit (HELOCs). Second liens convey fewer rights to the lender in the event of default, and in the event of a foreclosure, the first mortgage must be satisfied before any payment can go to the second.

An infrastructure where the vast majority of mortgages are sold. Most typically, individual mortgages are grouped together into large pools called Mortgage Backed Securities. Shares in MBSs are sold to investors, providing funds for more mortgages.

See Loan Servicing

A statement which shows the seller's net proceeds and the buyer's net payment at closing. A standard form itemizing all of the monies paid at closing, including real estate commissions, loan fees, points, and initial escrow amounts. The HUD-1 Settlement Statement was replaced by a new Closing Disclosure form.

Any mortgage or lien that has a priority lower than the first mortgage.

A drawing or map showing the boundaries of a property, easements, rights of way, encroachments, and other limits. The process of creating or verifying a survey map, usually required by a lender prior to making a loan.

An owners labor or services in the construction or rehabilitation of a property, instead of, or in addition to, cash.

Acronym for the Troubled Asset Relief Program, a voluntary Capital Purchase Program to encourage US financial institutions to build capital to increase the flow of financing to US businesses and consumers and to support the U.S. economy.

A deed to a property purchased at a public sale. See also Tax Sale

A claim against a property for due and unpaid taxes.

The sale of a property, usually under a court order, to satisfy a tax lien.

In some states, a type of joint ownership of property where a husband and wife are considered as one person, essentially providing an automatic right of survivorship.

Joint ownership by two or more persons. Each person has equal rights to the property but without any right of survivorship. Ownership does not pass to the others in the event of death.

A form of ownership where the title is in the name of the partnership, rather than in the names of the individual partners.

Detailed documentation evidencing ownership or other right to a property. In real estate, the deed.

An insurance against a loss (up to a specified amount) resulting from any dispute over ownership or other title defect.

An examination of the public title records to ensure that the seller is the owner of the property and that there are no liens or other claims outstanding.

A form of ownership in real property similar to a condominium or cooperative. Generally, a series of residential units which share common walls with the adjacent units, but stand on individual lots. Owners have title to the unit and lot that they occupy. The common areas and the building exteriors are owned jointly.

Fees and taxes imposed by state and local governments when title passes from one owner to another.

A series of indexes which have been used the basis for determining interest rate changes for many Adjustable Rate Mortgages.

A federal law and supporting regulations which require lenders to fully disclose, in writing, the terms and conditions of a loan, mortgage, or other credit. Lenders are required to specify the rate, term, fees, and other characteristics, including an Annual Percentage Rate (APR).See also RESPA.

A form of Adjustable Rate Mortgage with a one-time rate adjustment at the end of either five of seven years. The rate then remains constant for the remaining term.

The process of verifying the documentation and analyzing the risk associated with granting a mortgage.

Standard mortgage application form used for Fannie Mae and Freddie Mac mortgages. The form includes borrower declarations regarding income, savings, assets, debts, and more. Also known as Fannie Mae Form 1003 or Freddie Mac Form 65.

A residential mortgage made to an eligible military veteran. The loan is guaranteed by the Department of Veterans Affairs to protect the lender against loss in the event of default.

A deed in which the seller guarantees that title is free and clear of encumbrances other than any stated in it the contract or deed. See Quitclaim Deed

The difference in interest rates (yields) over various time maturities, most commonly those for U.S. government-backed debt (Treasury Bills, Notes and Bonds).

Specification, by a municipal or city authority, of areas for particular purposes; the type of use (residential, commercial, etc.) allowed for a property located within a specified area.