Real Estate

Real Estate terms

1. "A" Loan or "A" Paper A credit rating where the FICO score is 660 or above. There have been no late mortgage payments within a 12-month period.
2. "B" Loan or "B" Paper FICO scores from 620 - 659. Factors include two 30 day late mortgage payments and two to three 30 day late installment loan payments in the last 12 months.
3. "Bait-and-switch" schemes The lender may promise one type of loan or interest rate but, without good reason, gives you a different one.
4. "C" Loan or "C" Paper FICO scores typically from 580 to 619. Factors include three to four 30 day late mortgage payments and four to six 30 day late installment loan payments…
5. 203(b) FHA's single family program which provides mortgage insurance to lenders to protect against the borrower defaulting; 203(b) is used to finance the…
6. 203(k) This FHA mortgage insurance program enables homebuyers to finance both the purchase of a house and the cost of its rehabilitation through a single…
7. A.P.R. See: annual percentage rate.
8. Abstract of Title A historical summary provided by a title insurance company of all records affecting the title to a property.
9. Acceleration The right of the lender to demand payment on the outstanding balance of a loan.
10. acceleration clause A clause that allows a lender to declare the entire outstanding balance of a loan immediately due and payable should a borrower violate specific loan…
11. Acceptance The written approval of the buyer's offer by the seller.
12. Action Taken Date The settlement or closing date for originations. For applications that did not result in an origination, the date when the action was taken or when the…
13. Action Taken Type The disposition of the loan/application.
14. Activity Year The year for which the HMDA data are being collected.
15. Additional Principal Payment Money paid to the lender in addition to the established payment amount used directly against the loan principal to shorten the length of the loan.
16. Adjustable mortgage loan A mortgage instrument that allows maximum flexibility in selecting the terms under which interest rates and payments may be adjusted over the maturity of…
17. Adjustable-Rate Mortgage (ARM) (ARM) A mortgage that does not have a fixed interest rate. The rate changes during the life of the loan based on movements in an index rate, such as the rate…
18. Adjustment Date The actual date that the interest rate is changed for an ARM.
19. Adjustment Index The published market index used to calculate the interest rate of an ARM at the time of origination or adjustment.
20. Adjustment Interval The time between the interest rate change and the monthly payment for an ARM. The interval is usually every one, three or five years depending on the…
21. Affidavit A sworn statement in writing before a proper official, such as a notary public.
22. Agency Code Code to identify the supervisory/regulatory agency of the HMDA reporting institution.
23. Agency for Toxic Substances and Disease Registry (ATSDR) (ATSDR) As the lead Agency within the Public Health Service for implementing the health-related provisions of CERCLA, the Agency for Toxic Substances and Disease…
24. Agency for Toxic Substances and Disease Registry's Hazardous Substance Release/Health Effects Database (ATSDR-HazDat) (ATSDR-HazDat) "HazDat", the Agency for Toxic Substances and Disease Registry's Hazardous Substance Release/Health Effects Database, is the scientific and administrative…
25. Agent Agent means any individual, other than a broker-dealer, who represents a broker-dealer or issuer in effecting or attempting to effect purchases or sales…
26. Agreement of sale Same or similar to "contract to purchase." See "contract to purchase" under "mortgage."
27. All-inclusive deed of trust Similar to a "wraparound mortgage." See also "wraparound mortgage."
28. Alt-A Mortgages A classification of mortgages in which the risk profile falls between prime and subprime.
29. Alternative mortgage instrument (AMI) Any mortgage other than a fixed interest rate, level payment, amortizing loan. Includes variable rate mortgages, rollover loans, graduated payment…
30. amenities Features of your home that fit your preferences and can increase the value of your property.
31. Amenity A feature of the home or property that serves as a benefit to the buyer but that is not necessary to its use; may be natural (like location, woods, water)…
32. American Recovery and Reinvestment Act of 2009 Enacted in 2009, this Act authorized a series of measures intended to create jobs and promote investment and consumer spending.
33. American Society of Home Inspectors The American Society of Home Inspectors is a professional association of independent home inspectors. Phone(800) 743-2744
34. Amortization The process of reducing debt through regular installment payments of principal and interest that will result in the payoff of a loan at its maturity.
35. Annual cap See: cap.
36. Annual Mortgagor Statement Yearly statement to borrowers detailing the remaining principal and amounts paid for taxes and interest.
37. annual percentage rate (A.P.R.) The actual interest rate, taking into account points and other finance charges, for the projected life of a mortgage.
38. Annual Percentage Rate (APR) (APR) The cost of credit on a yearly basis, expressed as a percentage.
39. Annuity A life insurance contract sold by insurance companies, brokers, and other financial institutions. It is usually sold as a retirement investment.
40. Applicant Ethnicity Ethnicity of the applicant. This is reported for originated loans and for loan applications that do not result in an origination.
41. Applicant Race Race of the applicant. This is reported for originated loans and for loan applications that do not result in an origination.
42. Applicant Sex Sex of the applicant. This is reported for originated loans and for loan applications that do not result in an origination.
43. Application Under the Equal Credit Opportunity Act (ECOA), an oral or written request for an extension of credit that is made in accordance with the procedures…
44. Application Fee A fee charged when you apply for a credit card.
45. Application Received Date The date the application was received or the date shown on the application form. For purchased loans, "NA" for not applicable is reported.
46. Appraisal The act of evaluating and setting the value of a specific piece of personal or real property.
47. Appraisal Fee The charge for estimating the value of property offered as security.
48. Appraised Value An estimation of the current market value of a property.
49. Appraiser The person who evaluates the damage caused by an accident or other covered loss and determines the amount to be paid under the policy terms.
50. Appreciation When an asset such as stock, real estate, or personal property increases in value without any improvements or modification having been made to it, that's…
51. Arbitration The process in which a third-party arbiter examines facts presented by both you and the insurance company when you disagree about a settlement offer.
52. Architect An individual, partnership, corporation or other legal entity licensed to practice the profession of architecture under the education law of the State of…
53. Architrave 1. The lowest part of a classical entablature. 2. A molding enframing an opening such as a window or areaway or the open space between a rowhouse and the…
54. ARM See: adjustable rate mortgage.
55. Armature A metal structural support for a rigid projecting sign. The armature may support the bracket sign by means of one or two projecting arms.
56. As-is Condition The purchase or sale of a property in its existing condition without repairs.
57. asbestos A toxic material that was once used in housing insulation and fireproofing. Because some forms of asbestos have been linked to certain lung diseases, it…
58. Asking Price A seller's stated price for a property.
59. Assessed Value Typically the value placed on property for the purpose of taxation.
60. Assessment Charges levied against a property for tax purposes or to pay for municipal or association improvements such as curbs, sewers, or grounds maintenance.
61. Assessments The method of placing value on an asset for taxation purposes.
62. Assessor A public official who establishes the value of a property for taxation purposes.
63. Asset Anything owned that has value; any interest in real property or personal property that can be used for payment of debts.
64. Assets What a firm or individual owns.
65. Assignment Assignment occurs when someone who has written, or sold, a listed option receives a notice that the option has been exercised and he or she must fulfill…
66. Assignment of Mortgage A document evidencing the transfer of ownership of a mortgage from one person to another.
67. Assumable loan A mortgage loan that allows a buyer to undertake the preexisting obligation and liability of the loan, often with no change in loan terms.
68. Assumable Mortgage A mortgage loan that can be taken over (assumed) by the buyer when a home is sold.
69. Assumption A homebuyer's agreement to take on the primary responsibility for paying an existing mortgage from a home seller.
70. Assumption Clause A provision in the terms of a loan that allows the buyer to take legal responsibility for the mortgage from the seller.
71. Assumption Fee A fee a lender charges a buyer who will assume the seller's existing mortgage.
72. Assumption of mortgage Agreement by a buyer to assume the liability under an existing loan secured by a mortgage or deed of trust.
73. Authorization to Proceed (ATP) A letter from LPC notifying an applicant that certain work types, such as the installation of air conditioners or replacement windows, conform with the…
74. Automated Underwriting An automated process performed by a technology application that streamlines the processing of loan applications and provides a recommendation to the…
75. Average Price Determining the cost of a home by totaling the cost of all houses sold in one area and dividing by the number of homes sold.
76. Awning A metal frame clad with fabric attached over a window, door, porch opening or storefront to provide protection from the weather.
77. Back End Ratio (debt ratio) A ratio that compares the total of all monthly debt payments (mortgage, real estate taxes and insurance, car loans, and other consumer loans) to gross…
78. Back to Back Escrow Arrangements that an owner makes to oversee the sale of one property and the purchase of another at the same time.
79. Balance Sheet A financial statement showing the nature and amount of a company's assets, liabilities and shareholders' equity.
80. Balloon Loan or Mortgage A mortgage that typically offers low rates for an initial period of time (usually 5, 7, or 10) years; after that time period elapses, the balance is due…
81. Balloon Mortgage With a balloon mortgage, you make monthly payments over the mortgage term, which is typically five, seven, or ten years, and a final installment, or…
82. Balloon note A loan calling for periodic payments which are insufficient to fully amortize the face amount of the note prior to maturity, so that a principal sum known…
83. Balloon Payment A mortgage with periodic installments of principal and interest that do not fully amortize the loan.
84. Baluster One of a series of short vertical posts, often ornamental, used to support a rail.
85. Balustrade A railing composed of balusters and a top rail running along the edge of a porch, balcony, roof, or stoop.
86. Banking Interior The area of the designated interior historically used for banking operations and any associated interior spaces including, without limitation, entrance…
87. Bankruptcy The legal proceedings by which the affairs of a bankrupt person are turned over to a trustee or receiver for administration under the bankruptcy laws.
88. Bay A regularly repeating division of a façade, marked by fenestration.
89. Bay Window A projecting form containing windows that rises from the ground or from some other support, such as a porch roof; see also oriel.
90. Before-Tax Income Income before taxes are deducted. Also known as "gross income."
91. Beneficiary A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract.
92. biweekly mortgage A loan requiring payments of principal and interest at two-week intervals. This type of loan amortizes much faster than monthly payment loans.
93. Biweekly Payment Mortgage A mortgage with payments due every two weeks (instead of monthly).
94. Blanket mortgage A single mortgage covering more than one parcel of real estate, such as a mortgage covering all the lots of a builder in a subdivision.
95. Block Plan A drawing of a building’s foot print within an entire block in simplified, non-detailed form
96. Bona fide In good faith, without fraud.
97. Bond A long-term debt instrument with the promise to pay a specified amount of interest and to return the principal amount on a specified maturity date.
98. Borrower A person who has been approved to receive a loan and is then obligated to repay it and any additional fees according to the loan terms.
99. Bracket A projecting angled or curved form used as a support, found in conjunction with balconies, lintels, pediments, cornices, etc.
100. Bracket Sign A rigid outdoor sign, with two display faces, installed perpendicular to a building facade and hanging from an armature, used as an announcement for an…