Equity - The owner’s value or interest in a property.
Escrow - The placement of money or documents with a third party for safekeeping pending the fulfillment or performance
of a specific act or condition.
FHA Mortgage - A mortgage loan insured by the Federal Housing Administration, permitting lenders to offer better
Fixed-rate Mortgage - A loan that has only one stated interest rate.
HUD - Housing and Urban Development - A U.S. governmental agency established to implement certain federal
housing and community development programs.
Lien - A legal claim against a property that must be paid when property is sold.
Loan Origination Fee - The charge you must pay to the lender for processing your mortgage.
Market Value - The highest price a ready, willing and able buyer will pay and the lowest price a seller will accept.
Mortgage - A lien on real estate given by the buyer as security for money borrowed from a lender.
Mortgage Insurance - A policy that provides protection for the lender in case of default and guarantees repayment of
the loan in the event of the death or disability of the borrower.
MLS - Multiple Listing Service
Points - A dollar amount, expressed as a percentage of the mortgage amount, which is paid to a lender as a consideration
for making a loan. A point is 1% of the amount of the mortgage loan; also called discount points.
P & I - Principal and Interest Payment - The periodic (usually monthly) payment that includes the interest charges for
the period plus an amount applied to amortization of the principal balance.
PITI - Principal, Interest, Taxes and Insurance Payment - The periodic payment that includes a principal and interest
payment plus a contribution to the escrow account set up by the lender to pay insurance premiums and property taxes
on the mortgage property.
REALTOR® and REALTOR ASSOCIATE - Registered collective membership marks that identify real estate
professionals who are members of the National Association of REALTORS and subscribe to its strict Code of Ethics.
Title - A document that is evidence of ownership.
Title Insurance - Protection for lenders and homeowners against financial loss resulting from legal defects in the title.
Title Search - A check of title records to identify liens, encumbrances and ownership rights to the property.
VA Mortgage - A mortgage loan guaranteed by the Veterans Administration, an agency of the federal government that
provides services for eligible veterans.
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