Wondering how much your mortgage will be? Use our calculators to perform mortgage-related calculations such as your expected monthly payments.

Mortgage Glossary

A summary; an abridgment. Before the use of photostatic copying public records were kept by abstracts of recorded documents.

Abstract of Title
A compilation of the recorded documents relating to a parcel of land from which an attorney may give an opinion as to the condition of title. Still in use in some states, but giving way to the use of title insurance.

Acceleration Clause
Provision in a mortgage document stating that if a payment is missed or any other provision is violated the whole debt becomes immediately due and payable.

Formal declaration before a public official that one has signed a document. Prior to recording real estate legal documents, such as grant deeds and deeds of trust, a Notary Public acknowledges the person's signature on the document.

A measure of land equal to 43,560 square feet.

Action to Quiet Title
A court action to establish ownership of real property. Although technically not an action to remove a cloud on title, the two actions are usually referred to as "Quiet Title" actions.

Adjustable Rate Mortgage (ARM)
A mortgage where the interest rate is not fixed for the life of the loan. These mortgages adjust periodically based on an index that changes with market conditions. The rate of interest is the sum of the index plus a margin ( the margin remains fixed for the life of the loan). Most ARMs have periodic interest rate and payment caps, as well as a life cap. ARM's may also be referred to as AML's or VRM's.

Person authorized to act on behalf of another in dealings with third parties.

Agreement of Sale
An agreement between parties for the sale of real estate. In some states it is synonymous with a Purchase Agreement or Land Contract. In Texas it is known as an Earnest Money Contract.

Balloon Loan
Mortgage in which the remaining principal balance becomes fully due and payable at a predetermined time. Most of the time, balloon loans have level payments unitl the note becomes due and payable.

Balloon Payment
The final payment of a mortgage which is larger than the regular payment; it usually extinguishes the debt.

A court action to restructure debt.

The lender named on the mortgage note.

Preliminary agreement of sale, usually accompanied by earnest money (term also used with property insurance).

Blanket Mortgage
A mortgage covering more than one property of the mortgage.

A debt instrument in the capital markets. The US government, corporations and municipalities use bonds to raise money. Bonds can also be backed by real estate loans and the payments from mortgages.

Bridge Financing
A form of an interim loan, generally made between a short term loan and a long term loan when the borrower needs additional time before obtaining permanent financing.

A person that represents another for a fee in real estate transactions. Mortgage brokers help consumers locate suitable real estate loans and are paid a fee for their services.

An interest rate buydown is the temporary reduction of the note rate and resulting monthly payments a borrower pays to the lender. The shortfall between the rate on the note and initial payment made by the borrower is usually paid by a third party such as a seller or builder.

Buyer's Broker
Agent who takes the buyer as a client, and is obligated to represent their interest above all others, and owes specific fiduciary duties to the buyer.

Capital Gain
Taxable profit on the sale of an appreciated asset.

Caps are used on adjustable rate mortgages (ARMs) to limit the interest rate and/or the payment. Most ARMs have a periodic cap that is around 2% per year and a life cap of around 5%-6% over the life of the loan. "Payment only" caps sometimes create negative amortization where the principal balance of the loan increases rather than decreases over time.

Caveat Emptor
A legal term meaning "let buyer beware".

Certificate of Eligibility
A certificate obtained by a veteran from a Veteran's Administration office which states that the veteran is eligible for a VA insured loan.

Certificate of Occupancy
Document issued by a local governmental agency that states a property meets the local building standards for occupancy.

Certificate of Reasonable Value (CRV)
An appraisal of property for the purpose of insurance by the Veteran's Administration.

Certified Copy
A true copy, attested to be true by the officer holding the original.

Cestui Que Trust
One having an equitable interest in property with the legal title being vested to the trustee.

Chain of Title
The chronological order of conveyance of a parcel of land from the original owner to the present owner.

Personal property.

Conclusion of a real estate sale where the title of the property is transferred to the new owners and funds are transferred to the appropriate parties ( seller, old lender, real estate broker, etc.).

Closing Agent
A neutral third party that facilities the closing of a real estate transaction. The closing agent can be an escrow company, title company or attorney.

Closing Costs
Expenses incurred by the buyer/borrower and the seller in a real estate or mortgage transaction. There can be non-recurring costs that include a one time charge for points, appraisal fees, etc. or a proration of recurring costs such as taxes and insurance incurred while the new buyer/borrower owns the real estate.

Closing Statement
Statement prepared for the buyer and seller itemizing all of the costs of a real estate transaction.

Cloud on Title
An invalid encumbrance on real property, which, if valid, would affect the rights of the owner.

Equally responsible for repayment as the borrower.

Fee paid to a broker or other entity for services rendered. Real estate brokers and mortgage brokers receive a commission for the services they provide; a real estate broker secures a buyer for a property that is for sale and a mortgage broker secures a mortgage loan for the buyer to finance the purchase of a property. Commissions are generally paid as a percentage of the sales price in a real estate transaction or the loan amount in a mortgage transaction.

A written promise to make or insure a loan for a specified amount and on specified items.

Properties used as comparisons to determine the value of a specified property.

Conditional Commitment
A lenders promise to issue a loan subject to certain conditions. Generally, the lender will not fund the loan until the conditions have been met.

Conditional Offer
Purchase offer in which the buyer proposes to purchase property only after certain events (sale of another home, finding a loan commitment, etc.) occur.

A structure of two or more units, the interior space of which are individually owned.

Anything of value given to induce another to enter into a contract. Earnest money deposit on a sales contract is consideration.

Construction Loan
Short-term financing for real estate construction. Generally followed by long term financing called a "take out" loan issued upon completion of construction.

Condition which must be satisfied before the buyer can consummate the purchase of a property. Contingencies are generally outlined in the purchase contract between the buyer and seller.

Contract of Sale
A purchase transaction in which the buyer receives possession of the property, but the seller retains title.

Contract Sales Price
The full purchase price as stated in the contract.

Conventional Loan
A mortgage loan that is not guaranteed or insured by the government. FHA and VA loans are not conventional loans.

Conventional Mortgage
A loan neither insure by the FHA nor guaranteed by the VA.

Convertible ARMs
ARMs that have a provision allowing the borrower to convert the mortgage to a fixed rate term. The conversion feature is outlined in the mortgage note and has certain restrictions.

Cost Basis
Accounting figure that includes original cost of property plus certain expenses to purchase, money spent on permanent improvements and other costs, minus any depreciation claimed on tax returns over the years.

Cost Plus Contract
A building contract setting the builder's profit at a set percentage of actual cost of labor and materials.

A division within a state, usually encompassing one or more cities or towns.

Typically, the buyer, as opposed to the principal (seller).


Declaration of Restrictions
A set of restrictions filed by a subdivider to cover an entire tract or subdivision.

Formal written document transferring title to real estate; a new deed is used for each transfer.

Deed of Trust
An instrument given by the borrower to a third party (trustee) vesting title to the property in the trustee as security for the borrower's repayment of the mortgage loan.

Deed of Trust Rider
The document required by the lender to be recorded along with the security instrument for an ARM.

Deed Restriction
Provision placed in a deed to control use and occupancy of the property by future owners.

Failure to make mortgage payments or violations other provisions of the mortgage note.

Defective Title
Title to a negotiable instrument obtained by fraud. Title to real property which lacks some of the elements necessary to transfer good title.

Deficiency Judgment:
Personal claim against the debtor when the sale of foreclosed property does not yield sufficient proceeds to pay off the loan(s) and accrued interest.

Decrease in value to real property improvements caused by deterioration or obsolescence..

Real Estate left by will.

One to whom real estate is given by will.

A testator who leaves real estate.

Direct Endorsement
A lender that can complete the processing and closing of an FHA loan without prior approval from FHA.

Direct Reduction Mortgage
An amortized mortgage in which principal and interest are computed on the remaining balance.

Payments made during the course of an escrow or at closing.

A loan funded below par (100%). Lenders or investors will fund loans at a discount in order increase the overall yield on the note.

A loan funded below par (100%). Lenders or investors will fund loans at a discount in order to increase the overall yield on the note.

Documentary Tax Stamps
Stamps affixed to a deed showing the amount of transfer tax.

The rights of a widow to a portion of her deceased husband's property.

Down payment
Cash to be paid by the buyer at closing to consummate a real estate transaction.

Dragnet Clause
A clause in a mortgage or deed of trust which places the real estate as security for existing debts between the parties.


Earnest Money
Cash to be paid by the buyer at closing.

A right created by grant, reservation, agreement, prescription or necessary implication which one has in land owned by another.

Eminent Domain
A government right to acquire private property for public use by condemnation and the payment of just compensation.

Unauthorized intrusion of a building or improvement such as a wall, fence, etc. onto another's land.

A claim, line charge, attached to and binding real property.

The difference between the market value of the property and the homeowner's mortgage debt.

Escrows include funds given to a third party to be held until a specific occurrence; may refer to earnest money deposit; can also include a lender collecting and paying the taxes and insurance on behalf of the borrower.

Escrow Payment
That portion of a mortgagor's monthly payment held in trust by the lender to pay for taxes, mortgage insurance, hazard insurance, lease payments and other items as they become due. Also known as "impounds" in some state.

Escrow Reimbursement
The buyer reimburses the seller for the current balance of his escrow (or impounded) funds.

Estimated Closing Costs Statement
The statement which lists the financial settlement between buyer and seller and the costs each must pay. A separate statement for buyer and seller is sometimes prepared.

Exclusive Agency
Listing agreement in which only the listing office may sell the property and earn the commission. If the owner sells the house, the listing office would not receive any commission.

Exclusive Right-to-Sell
Listing agreement under which the owner promises to pay a commission if the property is sold during the listing period by anyone, even the owner.

Fannie Mae (FNMA)
Federal National Mortgage Association - FNMA is one of the major secondary market investors that purchases loans from mortgage companies and other depository institutions. Fannie Mae is a private corporation and its stock is traded on the New York Stock Exchange. (Note to webmaster. Term name has been shortened.)

Federal Home Board
The board which oversees the Federal Home Loan Bank systems.

Federal Home Loan Bank
Provides liquidity to supervised financial service companies, such as savings and loans and credit unions. The bank system has several districts.

Federal Home Loan Board
The board which charters and forbids discrimination in the sale.

Federal Housing Administration
A federal agency which insures first mortgages, enabling lenders to loan a very high percentage of the sale price.

Federal National Mortgage Association
See Fannie Mae.

Federal Reserve Bank
The regulatory agency for certain commercial banks and bank holding companies. Sets monetary policy for the country and provides liquidity for supervised financial institutions.

Federal Tax Lien
A lien attached to property for nonpayment of a federal tax.

Federal Tax Return
The U.S. government's method to identify individual and company's annual tax responsibility. The tax returns identify the income and taxes.

Fee Simple
Highest possible degree of ownership of land. The estate allows owners to have unrestricted powers to dispose of property, and which can be left by will or inherited.

A person in a position of trust or responsibility with specific duties to act in the best interest of a client. Real estate brokers and mortgage brokers are fiduciaries.

Financial Depositor Institutions
Banks, savings and loans or credit unions.

First Mortgage
Mortgage holding priority over the claims of subsequent lenders against the same property.

Personal property that has become part of the real estate.

A proceeding in or out of court to extinguish all rights, title and interest of the owner(s) of a property in order to sell the property and satisfy a lien against it.

Fredde Mac
See Federal Home Loan Mortgage Corporation.

Freddie Mac (FHLMC)
Federal Home Loan Mortgage Corporation - A government sponsored agency that is also a publicly traded company on the New York Stock Exchange that purchases mortgage loans from mortgage bankers and financial depository institutions. FHLMC is a major secondary market investor. (Note to webmaster. Term name has been shortened.)

Full Disclosure
Revealing all known facts which may affect the decision of a buyer or tenant.

General Lien
A lien such as a tax lien or judgement lien, which attaches to all property of the debtor rather than the lien of, for example, a trust deed, which attaches only to a specific property.

Ginnie Mae (GNMA)
Government National Mortgage Association - A government owned agency that acts as a secondary market conduit for FHA and VA loans. GNMA guarantees the timely principal and interest payments to investors.

Grandfather Clause
The clause in a law permitting the continuation of a use, business, etc., which was permissible but because of a change in the law is now no longer permissible.

The buyer, who receives a deed.

The buyer, who gives a deed.

Ground Rent
Rent paid for vacant land. If the property is improved, ground rent is the portion attributable to the land only.

Hazard Insurance
Insurance on a property against fire and similar risk.

Heirs and Assigns
An association of people who won homes in a given area for the purpose of importing or maintaining the quality of the area.

Homeowners Association
An association of people who own homes in a given area for the purpose of improving or maintaining the quality of the area.

Homeowner's or Maintenance Fees
Payments made by property owner(s) of a condominium or a unit in PUD to the homeowners' association for expenses incurred in upkeep of the common areas.

Homeowner's Policy
Policy which expands the insurance for a homeowner. It may include theft, liability, earthquake, etc.

Housing and Urban Development (HUD)
The federal government agency that oversees FHA.

A closing document required by HUD that outlines the settlement cost of a loan. The closing agent generally prepares the document and buyer receives it shortly after the loan is closed.

Impound Account
Account held by a lender for payment of taxes, insurance or other related expenses.

Incidental Recording, Delivery, Wire, etc., Fees
Other costs that are incurred when a real estate loan is closed.

A published rate or benchmark measure of current interest rate levels used to calculate periodic changes in rates charged on adjustable rate mortgages

Installment Sale
A tax term used to describe a sale which is usually accomplished by use of a land contract.

Insured Mortgage
A mortgage insured against loss to the mortgagee in the event of default and failure of the mortgaged property to satisfy the balance owing plus cost of foreclosure.

Interest Payment Notification (1098)
A federal tax form that lenders use at year end to notify borrowers of the interest that was paid on their mortgage over the last year.

Interest Rate
The percentage of an amount of money which is paid for its use for a specified time.

Investment Property
A property that is not occupied by the owner and in most cases produces income or is held for gains from appreciation.

Joint and Several
A liability which allows the creditor to sue any one of the debtors or sue all together.

Joint Tenancy
An undivided interest in property taken by two or more joint tenants. The interests must equal, accruing under the same conveyance and beginning at the same time. Upon death of a joint tenant, the interest passes to the surviving joint tenants rather than to the heirs of the deceased.

The decision of a court of law. Money judgments, when recorded, become a lien on real property of the defendant.

Junior Mortgage
A mortgage subordinate to another mortgage.

Land Contract
Installment plan for buying a house. It is used as an alternative to obtaining a loan from a traditional, source such as a mortgage banker or savings and loan.

Late Charge
A penalty for failure to pay an installment on time.

Lease with Option to Purchase
A lease under which the lessee has the right to purchase the property. The option may run for the length of the lease or only for a portion of the lease period.

Legal Description
An expanded and unique description of a property that is used on legal documents, such as deeds and deeds of trust. Recorded documents generally require a legal description.

A general term encompassing all mortgages,, and beneficiaries under deeds of trust.

Lender's Instructions
A document that lenders prepare for the closing agent that outlines the requirements for loan closing.

Letter of Intent
A formal method of stating that a prospective developer, buyer or lessee is interested in property.

An encumbrance against property for for the payment of debt; a lien may be a mechanic's lien, mortgage, unpaid taxes or judgment.

Life Estate
An estate in real property for the life of a living person. The estate then reverts back to the grantor or to a third party.

Limited Partnership
A partnership consisting of one or more general partners who conduct the business and are responsible for losses, and one or more special partners, who contributes capital and are liable only to the amount contributed.

Lis Pendens
A notice that litigation is pending on a property.

Listing Agreement
Agreement between a property owner and a real estate owner, authorizing the broker to find a buyer for the property. If the sale is consummated, the listing broker will be paid a fee.

Loan Discount/Ppremium Fees
Fees that borrowers pay (sometimes seller will pay for borrower) that adjust to the yield requirement of the investor. Loan discount denotes an investor yield requirement higher than the note rate. Loan premium denotes an investor yield requirement lower than the note rate.

Loan Lock
Guarantee from a lender that a borrower will receive the interest rate in effect at the time of loan application.

Loan Officer
A person that helps borrowers through the loan selection, processing and closing of a mortgage loan. Loan officers can be paid a commission or salary for their services and can work for mortgage brokers, mortgage bankers, or depository institutions.

Loan Origination Fees
The cost to obtain a loan that is paid to the originating lender or broker.

Loan Package
The information regarding a borrower and property necessary which is the basis for a lender's credit decision to extend or deny credit.

Loan Ratio
The amount of a loan to the value or selling price of real property.

Loan Servicing
The function of collecting loan payments, managing the property tax and insurance escrows, foreclosing on defaulted loans and remitting payments to the investor/beneficiary.

Loan-to-Value Ratio
The ratio of the mortgage loan amount to the property's appraised value or selling price, whichever is less.

The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.

Market Value
The most likely price a given property will bring if widely exposed on the market, assuming fully informed buyer and seller.

Marketable Title
Title that is free of liens, clouds on title and legal defects affecting the property

Mechanics Lien
A lien created by statute for the purpose of securing priority of payment for the price or value of work performed and materials furnished in construction or repair of improvements to land.

A lien or claim against real property given as security for a loan. It is a two party agreement as apposed to tri-party agreemenet of a deed of trust.

A lien or claim against real property given as security for a loan.

Mortgage Banker
Financial intermediaries that orginate mortgage loans through loan officers or independent mortgage brokers and sell the mortgages into the secondary mortgage market servicing retained or released.

Mortgage Broker
A professional that helps consumers through the loan selection, processing and closing of a mortgage loan. Most mortgage brokers have access to a wide range of mortgage products through many mortgage lenders. Mortgage brokers are paid a fee by the borrower when a suitable mortgage is found and closed.

Mortgage Insurance
Insurance required for a loan-to-value ratio above 80.01%.

Mortgage Note
The document outlining the amount of the debt, the terms and payments, the interest rate, margins and caps for ARMs, the name of the lender and the borrower, and any other material item required by the lender.

Mortgage Warehousing
A funding facility, such as a commercial bank, that is used by mortgage companies to fund loans which are sold to an investor shortly thereafter. The mortgage notes are used as collateral for this interim financing.

The lender of money or the receiver of the mortgage document.

The borrower of money or the giver of the mortgage document.

Negative Amortization
An increase in principal balance which occurs when the monthly payments do not cover all of the interest cost. The interest cost which is not covered by the payment is added to the unpaid principal balance.

Non-conforming Loan
Loans that are above the loan limits set by FNMA and FHLMC. Also known as jumbo loans.

Nonconforming Use
A property which does not conform to the zoning of an area.

A written promise to repay a certain sum of money on specified terms

Office of Comptroller Currency
A federal government regulatory agency that oversees some commercial banks.

Office of Thrift Supervision
A federal government regulatory agency that oversees savings and loans.

Open End Mortgage
A mortgage permitting the mortgagor to borrow additional money under the same mortgage, with certain conditions.

Origination Fee
A fee or charge for work involved in the evaluation, preparation and submission of a proposed mortgage loan.

Owner of record
The individual(s) named on a deed that has been recorded at the local municipality.

Owners Policy
Title insurance for the owner of property, rather than a lienholder.

Package Mortgage
Mortgage covering both real and personal property.

A mortgage, deed of trust or land contract which is given instead of cash.

Partial Release
A release of a portion of property covered by a mortgage.

Permanent Mortgage
A mortgage on completed construction on the same property under one mortgage or trust deed.

Abbreviation for principal, interest, taxes and insurance, often combined in a single monthly mortgage payment.

Planned Unit Development (PUD)
A housing development where there is a homeowners association and common areas owned by the homeowners.

A map or chart of a lot, subdivision or community, showing boundary lines, buildings and easements.

Abbreviation for private mortgage insurance: insurance issued by a company, which insures the lender against loss in the event that the borrower defaults on the mortgage.

Origination fees charged be the originating lender or broker and/or discount fees charge by lenders to increase the overall yield. A point is equal to one percent of the principal amount of your mortgage.

Portfolio Loan
Loans held as an investment by a bank, savings and loan or credit union.

Prepaid interest
Prepaid interest is the interest charged to borrowers at loan closing to pay for the cost of borrowing for a partial month. For example, if a loan closes on the 15th of the month and the first payment is due 45 days later, the lender will charge 15 days of prepaid interest.

Full payment of the principal before the due date; occurs when a property is sold or the borrower refinances the existing loan.

Prepayment Penalty
Charge levied by the lender for paying off a mortgage loan before its maturity date.

Primary Mortgage Insurance (PMI)
Insurance which insures the upper portion of a mortgage loan thereby reducing the lenders risk to principal loss in the event of a borrowers default. The insurance coverage allows lenders to make higher loan-to-value ratios (95% LTV).

Primary Mortgage Market
The process of obtaining a real estate loan, including the consumer's completion of a loan application form, validation of the credit and property information, loan underwriting by the lender and closing of the mortgage loan.

Primary Residence
Considered the permanent location of residency.

The outstanding balance of a loan.

Private Mortgage Insurance (PMI)
Insurance which insures the upper portion of a mortgage loan therby reducing the lender's risk to principal loss in the event of a borrowers default. The insurance coverage allows lenders to make higher loan-to-value ratios (95% LTV)

Processing, Underwriting and Document Fees
Charges for the lender's services associated with making the loan.

Property Tax
A tax levied by the local municipality or county on real and personal property.

To divide in proportionate shares, such as taxes, insurance, rent, or other items.

The allocation of expenses, such as taxes between buyer and seller at closing based on the number of days the property is owned during the month of closing.

Purchase Money Mortgage
A mortgage used to finance the purchase of real property.

Quit Claim Deed
A deed operating as a release; intended to pass any title, interest or claim which the grantor may have in the property.

Real Estate
Land and anything permanently affixed to the land and those things attached to the building.

Registered name for a member of the National Association of Realtors.

Realtor Associate
Salesperson associated with a broker who is a member of a Board of Realtors.

Recision of Contract
Annulling a contract and placing the parties to it in a position as if there had not been a contract.

Setting forth in a deed or other writing some explanation for the transaction.

The right of the holder of a note secured by a mortgage or deed of trust to look personally to the borrower or endorser for payment.

The practice of refusing to provide loans or insurance in a certain neighborhood.

The repayment of a debt from the proceeds of a new loan using the same property as security.

Reissue rate
A charge for a title insurance policy if a previous policy on the same property was issued within a specified period of time. Reissue is less than the original charge.

REIT (Real Estate Investment Trusts)
A method in investing real estate in a group, with certain tax advantages.

An instrument releasing property from the lien of the mortgage, judgment, etc.

RESPA (Real Estate Settlement Procedures Act)
A federal regulation that requires lenders and mortgage brokers to disclose to borrowers, in advance, the fees required to obtain a mortgage loan.

Revenue Stamps
Formerly, federal tax on a sale of real property. Canceled and replaced by state tax stamps.

Reverse Mortgage
A special program for the elderly that provides income until death. Payment requirements are arranged through the increase in the principal amount of the loan.

Second Home
Commonly known as a vacation home. This home is not rented and is occupied occasionally by the owners.

Secondary Financing
A loan secured by a mortgage or trust deed, which lien is junior to another mortgage or trust deed.

Secondary Market
The buying and selling of mortgage notes between sophisticated investors such as pension funds, commercial banks, savings and loans and wall street firms.

Secondary Market Investor
An entity, such as FNMA or FHLMC, that buys mortgage loans for investment or sells them again to another secondary market investor. Secondary market investors do not service loans and do not collect payments from borrowers.

Secondary Mortgage Market
The buying and selling of first mortgages of trust deeds by banks, insurance companies, government agencies, and other mortgagees.

Real or personal property pledged by a borrower as additional protection for the lender's interest.

Seller's Broker
Agent who takes the seller as a client, is legally obligated to a set of fiduciary duties and is required to put the seller's interests above all other's.

Set Back Ordinance
Regulates the distance from the lot line to the point where improvements may be constructed.

Settlement Cost, a HUD Guide
This booklet gives an overview of the lending process and is required by HUD. It is provided to consumers after the loan application is completed.

Settlement Statement
A statement prepared by broker, escrow or lender giving a complete breakdown of the cost associated with a real estate transaction.

Sheriff's Deed
A deed given at the sheriff's sale in foreclosure of a mortgage.

Single Family Detached Home
A residential home that is not attached physically to another home.

Specific Performance
Lawsuit requesting that a contract be exactly carried out, usually asking that the seller be ordered to convey the property as previously agreed.

Standard Uniform Application
An application developed by FNMA and FHLMC that is widely used in the mortgage industry.

State and Local Housing Programs
Unique housing finance programs to assist first time home buyers and low to moderate housing groups. Each state and local group has different sets of criteria.

Statutory Lien
An involuntary lien, includes tax liens, judgement liens, mechanic liens, etc.

Substitute of Trustee
A document which is recorded to change the trustee under the deed of trust.

Map made by a licensed surveyor who measures land and charts its boundaries, improvements and relationship to the property surrounding it.

Tax Lien
Lien for nonpayment of taxes.

Tax Sale
Public sale of property at an auction by a governmental authority, due to non payment of property taxes.

Tenancy by the Entirety
A form of ownership by husband and wife whereby each owns the entire property. In event of the death of one, the survivor owns the property without probate.

Time is of the Essence
Legal phrase in a contract requiring punctual performance of all obligations.

Often used interchangeably with the word ownership. It indicates the accumulation of all rights in property by the owner and others.

Title Insurance
An insurance policy which protects the insured (purchaser and lender) against loss arising from defects in title.

Title Search
A review of the public records to make sure that no adverse claims affect the value of the title.

Title, Escrow and Closing Agent Fees
These companies charge various fees for their services.

Truth in Lending Statement (Regulation Z)
A federal government regulation that provides details of the cost of obtaining a mortgage loan. Lenders must provide this shortly after the loan application has been completed.

1010 Warning



Accident and Health Premium
Acquistion Cost
Addendum to Additional Commitment
Affidavit of Eligibility
Amortization Schedule
Annual Percentage Rate
Application/FNMA 1003
Application for Assistance under Section 235 of the National Housing Act HUD form 93100
Application for Authority to Close Loans on an Automatic Basis (Nonsupervised) VA Form 26-8736
Application for Commitment for Insurance under the National Housing Act (HUD) HUD Form 92900-1, VA Form 26-1802-a
Application for Home Loan Guaranty (VA)
Application for Master Conditional Commitment
Application for Property Appraisal Commitment (HUD) HUD Form 92800, VA Form 26-1805.
Appraised Value
Arms' Legnth Transaction
Associate Broker
Assumption Agreement
Assumtion Fee
Assumption of Mortgage


Balance Sheet
Basis Point
Building Code
Buydown Escrow Agreement
Bond Market
Bond Market


Cash Out
Code Violation
Capitalization Accounting
Cash Flow
Certificate of Commitment for VA Loan Guaranty
Certificate of Deposit
Certificate of Eligibility
Certificate of Loan Disbursement
Certificate of Occupancy
Certificate of Reasonable Value
Change Order
Clear Title
Closing Costs
Closing Statement
Cloud on Title
CMB (Certified Mortgage Banker)
Commitment Fee
Compliance Report
Conditional Commitment
Conditional Commitment Requirements
Conditional Sales Contract
Condominium Declaration
Contract of Sale
Conventional Loan
Cost Approach to Value
Coupon Rate
Credit Rating
Credit Report
CRA(Certified Review Appraiser)
Custodial Accounts


DD 214
Debt Service
Deed of Trust
Department of Housing and Urban Development (HUD)
Deposit Receipt
Description of Materials
Direct Endorsement
Documentary Stamp
Due-on-Sale Clause
Dwelling Unit


Earnest Money
Effective Gross Income (Personal)
Effective Rate
Escrow Account
Escrow Agent
Escrow Agreement for Postponed Exterior On-Site Improvements
Escrow Company
Escrow Contract
Escrow Costs
Escrow Fees
Escrow Payment
Evidence of Insurance
Existing Construction
Existing, Less than One Year Old


Fannie Mae
Farmer's Home Administration (FmHA)
Federal Home Loan Bank Board (FHLBB)
Federal Home Loan Mortgage Corporation (FHLMC, "Freddie Mac")
Federal Housing Administartion (FHA)
Federal National Mortgage Association (FNMA, "Fannie Mae")
Federal Truth-in-Lending Disclosure Statement (Reg Z)
Fee Simple
FHA Case Number
FHA Value
Firm Commitment
First Mortgage
First-Time Home Buyer


General and Specific Conditions for VA Certificate of Reasonable Value
Gift Affadivit
GI Loan
Governmental National Mortgage Association (GNMA, "Ginnie Mae")
GNMA Mortgage-Backed Securities
Ground Lease
Ground Rent
Guaranteed Loan


Hazard Insurance
Home Energy Checklist
Home Loan
Homeowners Association
Homeowners Policy
Housing Code
HUD-1 (Settlement Statement)


Improved Land
Income and Expense Related to Rental Properties
Income and Expense Statement
Income Approach to Value
Installment Note
Institutional Lender
Insured Closing Letter
Interim Loan
Investment Property
Insured Loan
Insured Mortgage
Interest Factor




Land Acquisition Loan
Late Charge
Leasehold Mortgage
Legal Description
Level Payment Mortgage
Life of Loan
Limited Common Area
Limited Partnership
Loan Analysis
Loan Submission
Loan-to-Value Ratio
Loan Verification