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Glossaries
of Housing Terms
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A
acceleration
clause
A
provision in a mortgage that gives the
lender the right to demand payment of
the entire principal balance if a monthly
payment is missed.
acceptance
An
offeree’s consent to enter into
a contract and be bound by the terms of
the offer.
additional
principal payment
A
payment by a borrower of more than the
scheduled principal amount due in order
to reduce the remaining balance on the
loan.
adjustable-rate
mortgage (ARM)
A
mortgage that permits the lender to adjust
the mortgage's interest rate periodically
on the basis of changes in a specified
index. Interest rates may move up or down,
as market conditions change.
adjusted
basis
The
original cost of a property plus the value
of any capital expenditures for improvements
to the property minus any depreciation
taken.
adjustment
date
The
date on which the interest rate changes
for an adjustable-rate mortgage (ARM).
adjustment
period
The
period that elapses between the adjustment
dates for an adjustable-rate mortgage
(ARM).
administrator
A
person appointed by a probate court to
administer the estate of a person who
died intestate.
affordability
analysis
A
detailed analysis of your ability to afford
the purchase of a home. An affordability
analysis takes into consideration your
income, liabilities and available funds,
along with the type of mortgage you plan
to use, the area where you want to purchase
a home and the closing costs that you
might expect to pay.
amenity
A
feature of real property that enhances
its attractiveness and increases the occupant’s
or user’s satisfaction although
the feature is not essential to the property’s
use. Natural amenities include a pleasant
or desirable location near water, scenic
views of the surrounding area, etc. Human-made
amenities include swimming pools, tennis
courts, community buildings and other
recreational facilities.
amortization
The
gradual repayment of a mortgage loan by
installments.
amortization
schedule
A
timetable for payment of a mortgage loan.
An amortization schedule shows the amount
of each payment applied to interest and
principal and shows the remaining balance
after each payment is made.
amortization
term
The
amount of time required to amortize the
mortgage loan. The amortization term is
expressed as a number of months. For example,
for a 30-year fixed-rate mortgage, the
amortization term is 360 months.
amortize
To
repay a mortgage with regular payments
that cover both principal and interest.
annual
mortgagor statement
A
report sent to the mortgagor (the borrower)
each year. The report shows how much was
paid in taxes and interest during the
year, as well as the remaining mortgage
loan balance at the end of the year.
annual
percentage rate (APR)
The
cost of a mortgage stated as a yearly
rate; includes such items as interest,
mortgage insurance and loan origination
fee (points).
annuity
An
amount paid yearly or at other regular
intervals, often on a guaranteed dollar
basis.
application
A
form used to apply for a mortgage loan
and to record pertinent information concerning
a prospective mortgagor and the proposed
security. Lenders use the information
on the loan application to evaluate whether
or not they can give the loan, and if
so, the amount of money they can lend.
appraisal
A
written analysis of the estimated value
of a property prepared by a qualified
appraiser. Contrast with home inspection.
appraised
value
An
opinion of a property's fair market value,
based on an appraiser's knowledge, experience
and analysis of the property.
appraiser
A
person qualified by education, training
and experience to estimate the value of
real property and personal property.
appreciation
An
increase in the value of a property due
to changes in market conditions or other
causes. The opposite of depreciation.
assessed
value
The
valuation placed on property by a public
tax assessor for purposes of taxation.
assessment
The
process of placing a value on property
for the strict purpose of taxation. May
also refer to a levy against property
for a special purpose, such as a sewer
assessment.
assessment
rolls
The
public record of taxable property.
assessor
A
public official who establishes the value
of a property for taxation purposes.
asset
Anything
of monetary value that is owned by a person.
Assets include real property, personal
property and enforceable claims against
others (including bank accounts, stocks,
mutual funds and so on).
assignment
The
transfer of a mortgage from one person
to another.
assumable
mortgage
A
mortgage that can be taken over ("assumed")
by the buyer when a home is sold.
assumption
The
transfer of the seller’s existing
mortgage to the buyer. See assumable mortgage.
assumption
clause
A
provision in an assumable mortgage that
allows a buyer to assume responsibility
for the mortgage from the seller. The
loan does not need to be paid in full
by the original borrower upon sale or
transfer of the property.
assumption
fee
The
fee paid to a lender (usually by the purchaser
of real property) resulting from the assumption
of an existing mortgage.
attorney-in-fact
One
who holds a power of attorney from another
to execute documents on behalf of the
grantor of the power.
B
balance
sheet
A
financial statement that shows assets,
liabilities and net worth as of a specific
date.
balloon
mortgage
A
mortgage that has level monthly payments
that will amortize it over a stated term
but that provides for a lump sum payment
to be due at the end of an earlier specified
term. The principal and interest on the
loan are amortized over a longer period
than the actual term of the mortgage.
balloon
payment
The
final lump sum payment that is made at
the maturity date of a balloon mortgage.
bankrupt
A
person, firm, or corporation that, through
a court proceeding, is relieved from the
payment of all debts after the surrender
of all assets to a court-appointed trustee.
bankruptcy
A
proceeding in a federal court in which
a debtor who owes more than his or her
assets can relieve the debts by transferring
his or her assets to a trustee.
before-tax
income
Income
before taxes are deducted.
beneficiary
The
person designated to receive the income
from a trust, estate or a deed of trust.
bequeath
To
transfer personal property through a will.
betterment
An
improvement that increases property value
as distinguished from repairs or replacements
that simply maintain value.
bill
of sale
A
written document that transfers title
to personal property.
binder
A
preliminary agreement, secured by the
payment of an earnest money deposit, under
which a buyer offers to purchase real
estate.
biweekly
payment mortgage
A
mortgage that requires payments to reduce
the debt every two weeks (instead of the
standard monthly payment schedule). The
26 (or possibly 27) biweekly payments
are each equal to one-half of the monthly
payment that would be required if the
loan were a standard 30-year fixed-rate
mortgage, and they are usually drafted
from the borrower’s bank account.
The result for the borrower is a substantial
savings in interest.
blanket
insurance policy
A
single policy that covers more than one
piece of property (or more than one person).
blanket
mortgage
The
mortgage that is secured by a cooperative
project, as opposed to the share loans
on individual units within the project.
bona
fide
In
good faith, without fraud.
bond
An
interest-bearing certificate of debt with
a maturity date. An obligation of a government
or business corporation. A real estate
bond is a written obligation usually secured
by a mortgage or a deed of trust.
breach
A
violation of any legal obligation.
bridge
loan
A
form of second trust that is collateralized
by the borrower's present home (which
is usually for sale) in a manner that
allows the proceeds to be used for closing
on a new house before the present home
is sold. Also known as "swing loan."
broker
A
person who, for a commission or a fee,
brings parties together and assists in
negotiating contracts between them.
budget
A
detailed plan of income and expenses expected
over a certain period of time. A budget
can provide guidelines for managing future
investments and expenses.
budget
category
A
category of income or expense data that
you can use in a budget. You can also
define your own budget categories and
add them to some or all of the budgets
you create. "Rent" is an example
of an expense category. "Salary"
is a typical income category.
building
code
Local
regulations that control design, construction
and materials used in construction. Building
codes are based on safety and health standards.
buydown
account
An
account in which funds are held so that
they can be applied as part of the monthly
mortgage payment as each payment comes
due during the period that an interest
rate buydown plan is in effect.
buydown
mortgage
A
temporary buydown is a mortgage on which
an initial lump sum payment is made by
any party to reduce a borrower’s
monthly payments during the first few
years of a mortgage. A permanent buydown
reduces the interest rate over the entire
life of a mortgage.
C
call
option
A
provision in the mortgage that gives the
mortgagee (the lender) the right to call
the mortgage due and payable at the end
of a specified period for whatever reason.
cap
A
provision of an adjustable-rate mortgage
(ARM) that limits how much the interest
rate or mortgage payments may increase
or decrease. See lifetime payment cap,
lifetime rate cap, periodic payment cap
and periodic rate cap.
capital
(1)
Money used to create income, either as
an investment in a business or an income
property. (2) The money or property comprising
the wealth owned or used by a person or
business enterprise. (3) The accumulated
wealth of a person or business. (4) The
net worth of a business represented by
the amount by which its assets exceed
liabilities.
capital
expenditure
The
cost of an improvement made to extend
the useful life of a property or to add
to its value.
capital
improvement
Any
structure or component erected as a permanent
improvement to real property that adds
to its value and useful life.
cash-out
refinance
A
refinance transaction in which the amount
of money received from the new loan exceeds
the total of the money needed to repay
the existing first mortgage, closing costs,
points and the amount required to satisfy
any outstanding subordinate mortgage liens.
In other words, a refinance transaction
in which the borrower receives additional
cash that can be used for any purpose.
certificate
of deposit
A
document written by a bank or other financial
institution that is evidence of a deposit,
with the issuer's promise to return the
deposit plus earnings at a specified interest
rate within a specified time period. See
adjustable rate mortgage (ARM).
certificate
of deposit index
An
index that is used to determine interest
rate changes for certain adjustable-rate
mortgage (ARM) plans. It represents the
weekly average of secondary market interest
rates on six-month negotiable certificates
of deposit. See adjustable-rate mortgage.
Certificate
of Eligibility
A
document issued by the federal government
certifying a veteran's eligibility for
a Department of Veterans Affairs (VA)
mortgage.
Certificate
of Reasonable Value (CRV)
A
document issued by the Department of Veterans
Affairs (VA) that establishes the maximum
value and loan amount for a VA mortgage.
certificate
of title
A
statement provided by an abstract company,
title company, or attorney stating that
the title to real estate is legally held
by the current owner.
chain
of title
The
history of all of the documents that transfer
title to a parcel of real property, starting
with the earliest existing document and
ending with the most recent.
change
frequency
The
frequency (in months) of payment and/or
interest rate changes in an adjustable-rate
mortgage (ARM).
chattel
Another
name for personal property.
clear
title
A
title that is free of liens or legal questions
as to ownership of the property.
closing
A
meeting at which a sale of a property
is finalized by the buyer signing the
mortgage documents and paying closing
costs. Also called "settlement."
At this meeting, ownership of the property
is transferred from the seller to the
buyer.
closing
cost item
A
fee or amount that a home buyer must pay
at closing for a single service, tax,
or product. Closing costs are made up
of individual closing cost items such
as origination fees and attorney's fees.
Many closing cost items are included as
numbered items on the HUD-1 statement.
closing
costs
Expenses
(over and above the price of the property)
incurred by buyers and sellers in transferring
ownership of a property. Closing costs
normally include an origination fee, an
attorney's fee, taxes, an amount placed
in escrow and charges for obtaining title
insurance and a survey. Closing costs
percentage will vary according to the
area of the country; lenders or REALTORS®
often provide estimates of closing costs
to prospective homebuyers.
closing
statement
See
HUD-1 statement.
cloud
on title
Any
conditions revealed by a title search
that adversely affect the title to real
estate. Usually clouds on title cannot
be removed except by a quitclaim deed,
release, or court action.
coinsurance
A
sharing of insurance risk between the
insurer and the insured. Coinsurance depends
on the relationship between the amount
of the policy and a specified percentage
of the actual value of the property insured
at the time of the loss.
coinsurance
clause
A
provision in a hazard insurance policy
that states the amount of coverage that
must be maintained -- as a percentage
of the total value of the property --
for the insured to collect the full amount
of a loss.
collateral
An
asset (such as a car or a home) that guarantees
the repayment of a loan. The borrower
risks losing the asset if the loan is
not repaid according to the terms of the
loan contract.
collection
The
efforts used to bring a delinquent mortgage
current and to file the necessary notices
to proceed with foreclosure when necessary.
co-maker
A
person who signs a promissory note along
with the borrower. A co-maker's signature
guarantees that the loan will be repaid,
because the borrower and the co-maker
are equally responsible for the repayment.
See endorser.
commission
The
fee charged by a broker or agent for negotiating
a real estate or loan transaction. A commission
is generally a percentage of the price
of the property or loan.
commitment
letter
A
formal offer by a lender stating the terms
under which it agrees to lend money to
a home buyer. Also known as a "loan
commitment."
common
area assessments
Levies
against individual unit owners in a condominium
or planned unit development (PUD) project
for additional capital to defray homeowners'
association costs and expenses and to
repair, replace, maintain, improve or
operate the common areas of the project.
common
areas
Those
portions of a building, land and amenities
owned (or managed) by a planned unit development
(PUD) or condominium project's homeowners'
association (or a cooperative project's
cooperative corporation) that are used
by all of the unit owners, who share in
the common expenses of their operation
and maintenance. Common areas include
swimming pools, tennis courts and other
recreational facilities, as well as common
corridors of buildings, parking areas,
means of ingress and egress, etc.
common
law
An
unwritten body of law based on general
custom in England and used to an extent
in the United States.
Community
Land Trust Mortgage Option
An
alternative financing option that enables
low- and moderate-income home buyers to
purchase housing that has been improved
by a nonprofit Community Land Trust and
to lease the land on which the property
stands.
community
property
In
some western and southwestern states,
a form of ownership under which property
acquired during a marriage is presumed
to be owned jointly unless acquired as
separate property of either spouse.
Community
Seconds®
An
alternative financing option for low-
and moderate-income households under which
an investor purchases a first mortgage
that has a subsidized second mortgage
behind it. The second mortgage may be
issued by a state, county or local housing
agency, foundation, or nonprofit organization.
Payment on the second mortgage is often
deferred and carries a very low interest
rate (or no interest rate at all). Part
of the debt may be forgiven incrementally
for each year the buyer remains in the
home.
comparables
An
abbreviation for "comparable properties";
used for comparative purposes in the appraisal
process. Comparables are properties like
the property under consideration; they
have reasonably the same size, location
and amenities and have recently been sold.
Comparables help the appraiser determine
the approximate fair market value of the
subject property.
compound
interest
Interest
paid on the original principal balance
and on the accrued and unpaid interest.
condemnation
The
determination that a building is not fit
for use or is dangerous and must be destroyed;
the taking of private property for a public
purpose through an exercise of the right
of eminent domain.
condominium
A
real estate project in which each unit
owner has title to a unit in a building,
an undivided interest in the common areas
of the project and sometimes the exclusive
use of certain limited common areas.
condominium
conversion
Changing
the ownership of an existing building
(usually a rental project) to the condominium
form of ownership.
condominium
hotel
A
condominium project that has rental or
registration desks, short-term occupancy,
food and telephone services and daily
cleaning services and that is operated
as a commercial hotel even though the
units are individually owned.
construction
loan
A
short-term, interim loan for financing
the cost of construction. The lender makes
payments to the builder at periodic intervals
as the work progresses.
contingency
A
condition that must be met before a contract
is legally binding. For example, home
purchasers often include a contingency
that specifies that the contract is not
binding until the purchaser obtains a
satisfactory home inspection report from
a qualified home inspector.
contract
An
oral or written agreement to do or not
to do a certain thing.
conventional
mortgage
A
mortgage that is not insured or guaranteed
by the federal government. Contrast with
government mortgage.
convertibility
clause
A
provision in some adjustable-rate mortgages
(ARMs) that allows the borrower to change
the ARM to a fixed-rate mortgage at specified
timeframes after loan origination.
convertible
ARM
An
adjustable-rate mortgage (ARM) that can
be converted to a fixed-rate mortgage
under specified conditions.
cooperative
(co-op)
A
type of multiple ownership in which the
residents of a multiunit housing complex
own shares in the cooperative corporation
that owns the property, giving each resident
the right to occupy a specific apartment
or unit.
cooperative
corporation
A
business trust entity that holds title
to a cooperative project and grants occupancy
rights to particular apartments or units
to shareholders through proprietary leases
or similar arrangements.
cooperative
mortgages
Mortgages
related to a cooperative project. This
usually refers to the multifamily mortgage
covering the entire project but occasionally
describes the share loans on the individual
units.
cooperative
project
A
residential or mixed-use building wherein
a corporation or trust holds title to
the property and sells shares of stock
representing the value of a single apartment
unit to individuals who, in turn, receive
a proprietary lease as evidence of title.
corporate
relocation
Arrangements
under which an employer moves an employee
to another area as part of the employer's
normal course of business or under which
it transfers a substantial part or all
of its operations and employees to another
area because it is relocating its headquarters
or expanding its office capacity.
cost
of funds index (COFI)
An
index that is used to determine interest
rate changes for certain adjustable-rate
mortgage (ARM) plans. It represents the
weighted-average cost of savings, borrowings
and advances of the 11th District members
of the Federal Home Loan Bank of San Francisco.
See adjustable-rate mortgage (ARM).
covenant
A
clause in a mortgage that obligates or
restricts the borrower and that, if violated,
can result in foreclosure.
credit
An
agreement in which a borrower receives
something of value in exchange for a promise
to repay the lender at a later date.
credit
history
A
record of an individual's open and fully
repaid debts. A credit history helps a
lender to determine whether a potential
borrower has a history of repaying debts
in a timely manner.
credit
life insurance
A
type of insurance often bought by mortgagors
because it will pay off the mortgage debt
if the mortgagor dies while the policy
is in force.
creditor
A
person to whom money is owed.
credit
report
A
report of an individual's credit history
prepared by a credit bureau and used by
a lender in determining a loan applicant's
creditworthiness.
credit
reporting agency (or bureau)
An
organization that prepares reports that
are used by lenders to determine a potential
borrower's credit history. The agency
obtains data for these reports from a
credit repository as well as from other
sources.
credit
repository
An
organization that gathers, records, updates
and stores financial and public records
information about the payment records
of individuals who are being considered
for credit.
D
debt
An
amount owed to another. See installment
loan and revolving liability.
deed
The
legal document conveying title to a property.
deed-in-lieu
A
deed given by a mortgagor to the mortgagee
to satisfy a debt and avoid foreclosure.
Also called a "voluntary conveyance."
deed
of trust
The
document used in some states instead of
a mortgage; title is conveyed to a trustee.
default
Failure
to make mortgage payments on a timely
basis or to comply with other requirements
of a mortgage.
delinquency
Failure
to make mortgage payments when mortgage
payments are due.
deposit
A
sum of money given to bind the sale of
real estate, or a sum of money given to
ensure payment or an advance of funds
in the processing of a loan. See earnest
money deposit.
depreciation
A
decline in the value of property; the
opposite of appreciation.
discount
points
See
point.
dower
The
rights of a widow in the property of her
husband at his death.
down
payment
The
part of the purchase price of a property
that the buyer pays in cash and does not
finance with a mortgage.
due-on-sale
provision
A
provision in a mortgage that allows the
lender to demand repayment in full if
the borrower sells the property that serves
as security for the mortgage.
due-on-transfer
provision
This
terminology is usually used for second
mortgages. See due-on-sale provision.
E
earnest
money deposit
A
deposit made by the potential home buyer
to show that he or she is serious about
buying the house.
easement
A
right of way giving persons other than
the owner access to or over a property.
effective
age
An
appraiser’s estimate of the physical
condition of a building. The actual age
of a building may be shorter or longer
than its effective age.
effective
gross income
Normal
annual income including overtime that
is regular or guaranteed. The income may
be from more than one source. Salary is
generally the principal source, but other
income may qualify if it is significant
and stable.
eminent
domain
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.
employer-assisted
housing
A
special housing initiative that offers
several different ways for employers to
work with local lenders to develop plans
to assist their employees in purchasing
homes.
encroachment
An
improvement that intrudes illegally on
another’s property.
encumbrance
Anything
that affects or limits the fee simple
title to a property, such as mortgages,
leases, easements or restrictions.
endorser
A
person who signs ownership interest over
to another party. Contrast with co-maker.
Equal
Credit Opportunity Act (ECOA)
A
federal law that requires lenders and
other creditors to make credit equally
available without discrimination based
on race, color, religion, national origin,
age, sex, marital status, or receipt of
income from public assistance programs.
equity
A
homeowner's financial interest in a property.
Equity is the difference between the fair
market value of the property and the amount
still owed on its mortgage.
escrow
An
item of value, money, or documents deposited
with a third party to be delivered upon
the fulfillment of a condition. For example,
the deposit by a borrower with the lender
of funds to pay taxes and insurance premiums
when they become due, or the deposit of
funds or documents with an attorney or
escrow agent to be disbursed upon the
closing of a sale of real estate.
escrow
account
The
account in which a mortgage servicer holds
the borrower’s escrow payments prior
to paying property expenses.
escrow
analysis
The
periodic examination of escrow accounts
to determine if current monthly deposits
will provide sufficient funds to pay taxes,
insurance and other bills when due.
escrow
collections
Funds
collected by the servicer and set aside
in an escrow account to pay the borrower’s
property taxes, mortgage insurance and
hazard insurance.
escrow
disbursements
The
use of escrow funds to pay real estate
taxes, hazard insurance, mortgage insurance
and other property expenses as they become
due.
escrow
payment
The
portion of a mortgagor’s monthly
payment that is held by the servicer to
pay for taxes, hazard insurance, mortgage
insurance, lease payments and other items
as they become due. Known as "impounds"
or "reserves" in some states.
estate
The
ownership interest of an individual in
real property. The sum total of all the
real property and personal property owned
by an individual at time of death.
eviction
The
lawful expulsion of an occupant from real
property.
examination
of title
The
report on the title of a property from
the public records or an abstract of the
title.
exclusive
listing
A
written contract that gives a licensed
real estate agent the exclusive right
to sell a property for a specified time,
but reserving the owner’s right
to sell the property alone without the
payment of a commission.
executor
A
person named in a will to administer an
estate. The court will appoint an administrator
if no executor is named. "Executrix"
is the feminine form.
F
Fair
Credit Reporting Act
A
consumer protection law that regulates
the disclosure of consumer credit reports
by consumer/credit reporting agencies
and establishes procedures for correcting
mistakes on one's credit record.
fair
market value
The
highest price that a buyer, willing but
not compelled to buy, would pay and the
lowest a seller, willing but not compelled
to sell, would accept.
Fannie
Mae
A
New York Stock Exchange company and the
largest non-bank financial services company
in the world. It operates pursuant to
a federal charter and is the nation's
largest source of financing for home mortgages.
Fannie
Mae Properties
Fannie
Mae owns, manages and has available for
sale, single-family detached homes, two-
to four-unit properties, condominiums
and townhouses in a variety of neighborhoods.
The number, type and sales price may vary
substantially. The homes vary in age and
may require repairs. Fannie Mae homes
are sold through local real estate brokers
whose contact information is provided
in the Fannie Mae Properties for Sale
search results on homepath.com.
Fannie
Mae's Community Home Buyer's ProgramSM
An
income-based community lending model,
under which mortgage insurers and Fannie
Mae offer flexible underwriting guidelines
to increase a low- or moderate-income
family's buying power and to decrease
the total amount of cash needed to purchase
a home. Borrowers who participate in this
model are required to attend pre-purchase
home-buyer education sessions.
Fannie
97®
A
financing option for a fixed-rate mortgage
that offers home buyers a 3 percent down
payment loan with a term between 15 and
30 years. The mortgage features a loan-to-value
(LTV) percentage of 97 percent, and is
designed to expand homeownership opportunities
for people with modest incomes. Borrowers
must take a pre-purchase home-buyer education
session to qualify for a Fannie 97 mortgage.
Federal
Housing Administration (FHA)
An
agency of the U.S. Department of Housing
and Urban Development (HUD). Its main
activity is the insuring of residential
mortgage loans made by private lenders.
The FHA sets standards for construction
and underwriting but does not lend money
or plan or construct housing.
fee
simple
The
greatest possible interest a person can
have in real estate.
fee
simple estate
An
unconditional, unlimited estate of inheritance
that represents the greatest estate and
most extensive interest in land that can
be enjoyed. It is of perpetual duration.
When the real estate is in a condominium
project, the unit owner is the exclusive
owner only of the air space within his
or her portion of the building (the unit)
and is an owner in common with respect
to the land and other common portions
of the property.
FHA
coinsured mortgage
A
mortgage (under FHA Section 244) for which
the Federal Housing Administration (FHA)
and the originating lender share the risk
of loss in the event of the mortgagor's
default.
FHA
mortgage
A
mortgage that is insured by the Federal
Housing Administration (FHA). Also known
as a government mortgage.
finder's
fee
A
fee or commission paid to a mortgage broker
for finding a mortgage loan for a prospective
borrower.
firm
commitment
A
lender’s agreement to make a loan
to a specific borrower on a specific property.
first
mortgage
A
mortgage that is the primary lien against
a property.
fixed
installment
The
monthly payment due on a mortgage loan.
The fixed installment includes payment
of both principal and interest.
fixed-rate
mortgage (FRM)
A
mortgage in which the interest rate does
not change during the entire term of the
loan.
fixture
Personal
property that becomes real property when
attached in a permanent manner to real
estate.
flood
insurance
Insurance
that compensates for physical property
damage resulting from flooding. It is
required for properties located in federally
designated flood areas.
foreclosure
The
legal process by which a borrower in default
under a mortgage is deprived of his or
her interest in the mortgaged property.
This usually involves a forced sale of
the property at public auction with the
proceeds of the sale being applied to
the mortgage debt.
forfeiture
The
loss of money, property, rights or privileges
due to a breach of legal obligation.
401(k)/403(b)
An
employer-sponsored investment plan that
allows individuals to set aside tax-deferred
income for retirement or emergency purposes.
401(k) plans are provided by employers
that are private corporations. 403(b)
plans are provided by employers that are
not for profit organizations.
401(k)/403(b)
loan
Some
administrators of 401(k)/403(b) plans
allow for loans against the monies you
have accumulated in these plans -- monies
must be repaid to avoid serious penalty
charges.
fully
amortized ARM
An
adjustable-rate mortgage (ARM) with a
monthly payment that is sufficient to
amortize the remaining balance, at the
interest accrual rate, over the amortization
term.
G
government
mortgage
A
mortgage that is insured by the Federal
Housing Administration (FHA) or guaranteed
by the Department of Veterans Affairs
(VA) or the Rural Housing Service (RHS).
Contrast with conventional mortage.
Government
National Mortgage Association
A
government-owned corporation within the
U.S. Department of Housing and Urban Development
(HUD). Created by Congress on Sept. 1,
1968, GNMA assumed responsibility for
the special assistance loan program formerly
administered by Fannie Mae. Popularly
known as Ginnie Mae.
grantee
The
person to whom an interest in real property
is conveyed.
grantor
The
person conveying an interest in real property.
ground
rent
The
amount of money that is paid for the use
of land when title to a property is held
as a leasehold estate rather than as a
fee simple estate.
group
home
A
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