Term	Description
Acceleration Clause	A clause in a loan that gives the lender the power to declare all sums immediately due such as the sale of the property, or the failure to make the payments on time.
Adjustable Rate Mortgage	The interest rate on this mortgage does not stay the same, it changes periodically.
Agreement of Sale	Contract signed by buyer and seller stating the terms and conditions under which a property will be sold.
Amortization	A gradual paying off of a debt by periodic installments where you pay principal and interest.
Annual Percentage Rate (APR)	The interest rate reflecting the cost of a mortgage as a yearly rate.
Appraisal	An estimate of the value of property, made by a qualified professional. Most states require all Appraisers to be licensed.
Assessment	A local tax levied against a property for a specific purpose.
Assign	To transfer interest.
Assignee	One who receives an assignment or transfer of rights.
Assignment	The transfer of a mortgage from one person to another.
Assumable Mortgage	A mortgage loan which allows a new home buyer to take over the obligation of making loan payments with no change in the terms of the original loan.
Assumption	The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller.
Balloon Mortgage	A short term fixed rate loan that involves small payments for a certain period of time, and then one large payment for the remaining amount due on loan.
Bankruptcy	The financial inability to pay one's debts when due. The debtor surrenders his assets to the bankruptcy court.
Before-tax income	Income before taxes are deducted.
Beneficiary	The person who receives or is to receive the benefits resulting from certain acts.
Bill of sale	A written document that transfers title to personal property.
Binder or "Offer to Purchase"	A preliminary agreement, secured by the payment of earnest money, between a buyer and seller as an offer to purchase real estate. A binder secures the right to purchase real estate upon agreed terms for a limited period of time. If the buyer changes his mind or is unable to purchase, the earnest money is forfeited unless the binder expressly provides that it is to be refunded.
Borrower	One who receives funds with the expressed or implied intention of repaying the loan in full.
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.
Broker	An individual in the business of assisting in arranging funding or negotiating contracts for a client but who does not loan the money himself. Brokers usually charge a fee or receive a commission for their services.
Buy down	Money advanced by an individual (seller, builder, etc.) to reduce monthly payments for a home mortgage either during the entire term or for an initial period of years.
Cap	A provision of an ARM limiting how much the interest rate or mortgage payments may increase.
Cash Out	A loan transaction in which the borrower receives funds at the time of closing.
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.
Certificate of Title	An opinion by an attorney as to the status of title to a property, according to the public records.
Chain of title	The chronological order of conveyance of a parcel of land from the original owner to the present owner.
Clear title	A marketable title, free of clouds and disputed interests.
Closing	The act of transferring ownership of a property from seller to buyer in accordance with a sales contract.
Closing Costs	Expenses incurred by the buyer and seller in a real estate or mortgage transaction.
Cloud (On Title)	An outstanding claim or encumbrance that would effect the owner's title to property.
Co-borrower	One who is individually and jointly obligated to repay a mortgage loan and may or may not share ownership of the property with one or more borrowers. See also
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.
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 Fee	A fee charged when an agreement is reached between a lender and a borrower for a loan on specific terms and conditions. Rate and points may be locked-in or may be "floating".
Commitment Letter	A formal offer by a lender stating the terms under which it agrees to lend money to a homebuyer. Also known as a "loan commitment."
Compound interest	Interest paid on the original principal balance and on the accrued and unpaid interest.
Condominium	A form of ownership where the dwelling units are individually owned and homeowners share ownership of common areas such as the grounds, the parking facilities and the tennis courts.
Consumer Reporting Agency	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.
Contingency	A condition that must be met before a contract is legally binding.
Contract of Sale	The agreement between the buyer and seller on the purchase price, terms, and conditions of a sale.
Conventional Loan	A mortgage loan that is not insured, guaranteed or funded by the Veterans Administration (VA), the Federal Housing Administration (FHA) or Rural Economic Community Development (RECD) (formerly Farmers Home Administration).
Conversion Clause	A provision in some ARMs that allows you to change an ARM to a fixed-rate loan, usually after the first adjustment period
Covenant	A clause in a mortgage that obligates or restricts the borrower and that, if violated, can result in foreclosure.
Covenants	Rules and restrictions governing the use of property.
Credit Bureau Company	A company that is engaged in the preparation of reports that are used by credit grantors to determine the credit and public records history of an individual. The agency obtains data for these reports from national repositories and other sources (e.g., TRW, TransUnion, Equifax, and public record data).
Credit Bureau Repository	An organization that compiles credit history data directly from lenders and creditors to build in-file credit reports for individuals; the main repositories are TRW, TransUnion, & Equifax.
Credit Report	A report detailing the credit history of a prospective borrower that's used to help determine borrower credit worthiness.
Debt-to-Income Ratio	The ratio of the borrower's total monthly obligations, including housing expenses and recurring debts, to monthly income. It is used to determine the borrower's capacity to repay the mortgage and all other debts.
Deed	Legal document by which title to real property is transferred from one owner to another. The deed contains a description of the property, and is signed, witnessed, and delivered to the buyer at closing.
Deed of Trust	A document, used in many states in place of a mortgage, whereby a trustee pending repayment of the loan holds title to the property.
Deed-in-lieu	A deed given by a mortgagor to the mortgagee to satisfy a debt and avoid foreclosure.
Default	Failure to meet legal obligations in a contract, including failure to make payments on a loan.
Delinquency	Failure to make payments as agreed in the loan agreement.
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.
Depreciation	A decline in the value of property; the opposite of appreciation.
Discount Points (or Points)	Points are an up-front fee paid to the lender at the time that you get your loan. Each point equals one percent of your total loan amount. Points and interest rates are inherently connected: in general, the more points you pay, the lower the interest rate you get.
Down Payment	The amount of your home's purchase price you need to supply up front in cash to get your loan. For conventional loans, you should strive for a down payment that's at least 20% of your home's value, since lenders generally do not require private mortgage insurance with a down payment of at least 20% of your home's purchase price. (Note, however, that FHA and VA loans have different policies regarding insurance.)
Due-on-Sale Clause	Provision in a mortgage or deed of trust allowing the lender to demand immediate payment of the loan balance upon sale of the property.
Effective Rate	The effective rate is a consumer-oriented rate that takes into account the projected amount of time you tell us you will actually have the loan, as well as the specific costs, fees, and potential rate changes associated with it. The fees and costs are distributed over the time you plan to be in the house, allowing you to do an apples-to-apples comparison of a variety of loan types. The effective rate is not the APR. It is similar in that it factors in interest, mortgage insurance, and other fees (including points); however, the APR assumes that you keep your loan for the entire term, while the effective rate takes into account how long you tell us you plan to be in your house.
Encumbrance	Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.
Equal Credit Opportunity Act	Federal law requiring 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	The difference between the current market value of a property and the total debt obligations against the property. On a new mortgage loan, the down payment represents the equity in the property.
Escrow	A transaction in which a third party acts as the agent for seller and buyer, or for borrower and lender, in handling legal documents and disbursement of funds.
Escrow Account	An account held by the lender to which the borrower pays monthly installments, collected as part of the monthly mortgage payment, for annual expenses such as taxes and insurance. The lender disburses escrow account funds on behalf of the borrower when they become due. Also known as Impound Account.
Escrow Agent	A person with fiduciary responsibility to the buyer and seller, or the borrower and lender, to ensure that the terms of the purchase/sale or loan are carried out.
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.
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.
Fair Market Value	The price established in a free market between a buyer and seller in an arms-length transaction where neither one is compelled to buy or sell. In an appraisal, this is the final value derived after examining the Sales Comparison, Cost, and if applicable, Income approaches; sometimes referred to as "Market Value."
Fannie Mae	A common nickname for the Federal National Mortgage Association.
Federal Deposit Insurance Corporation (FDIC)	Independent deposit insurance agency created by Congress to maintain stability and public confidence in the nation's banking system.
Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac)	This agency buys loans that are underwritten to its specific guidelines. These guidelines are an industry standard for residential conventional lending.
Federal Housing Administration (FHA)	An agency within the Department of Housing and Urban Development that sets standards for underwriting and insures residential mortgage loans made by private lenders. One of FHA's objectives is to ensure affordable mortgages to those with low or moderate income. FHA loans may be high loan-to-value, and they are limited by loan amount. FHA mortgage insurance requires a fee of up to 3.8 percent of the loan amount to be paid either at closing or added to each monthly payment, as well as an annual fee of 0.5 percent of the loan amount added to each monthly payment.
Federal National Mortgage Association (FNMA, or Fannie Mae)	A congressionally chartered, shareholder-owned company that is the nation's largest supplier of home mortgage funds. This agency buys loans that are underwritten to its specific guidelines. These guidelines are an industry standard for residential conventional lending.
Fee simple	The maximum form of ownership, with the right to occupy a property and sell it to a buyer at any time. Upon the death of the owner, the property goes to the owner's designated heirs. Also known as fee simple absolute.
FHA Loans	Fixed- or adjustable-rate loans insured by the U.S. Department of Housing and Urban Development. FHA loans are designed to make housing more affordable, particularly for first-time homebuyers. FHA loans typically permit borrowers to buy a home with a lower down payment than conventional loans.
Fifteen Year Mortgage	A loan with a term of 15 years. Although the monthly payment on a 15-year mortgage is higher than that of a 30-year mortgage, the amount of interest paid over the life of the loan is substantially less.
First Mortgage	A mortgage which is in first lien position, taking priority over all other liens. In the case of a foreclosure, the first mortgage will be repaid before any other mortgages.
Fixed Rate	An interest rate which is fixed for the term of the loan.
Fixed Rate Loans	Fixed rate loans have interest rates that do not change over the life of the loan. As a result, monthly payments for principal and interest are also fixed for the life of the loan. Fixed rate loans typically have 15-year or 30-year terms. With a fixed rate loan, you will have predictable monthly mortgage payments for as long as you have the loan.
Gift funds	Funds donated to the borrower from certain eligible sources to assist the borrower in meeting closing costs. Generally, eligible sources are a relative, church, municipality, or nonprofit organization.
Good Faith Estimate	Written estimate of the settlement costs the borrower will likely have to pay at closing. Under the Real Estate Settlement Procedures Act (RESPA), the lender is required to provide this disclosure to the borrower within three days of receiving a loan application.
Government National Mortgage Association (GNMA or Ginnie Mae)	A government organization that participates in the secondary market, buying, selling and guaranteeing FHA and VA loans.
Grace Period	Period of time during which a loan payment may be made after its due date without incurring a late penalty. The grace period is specified as part of the terms of the loan in the Note.
Graduated Payment Mortgage (GPM)	A mortgage that has initial monthly payments set at an amount lower than that required for full amortization of the debt. The payments are then increased by a specified percentage each year during the graduated payment period. At the end of the period, payments are in an amount that will fully amortize the mortgage.
Gross Income	Total income before taxes or expenses are deducted
Home Equity Line of Credit	A real estate loan, usually in a subordinate position, that allows a borrower to borrow against equity in real estate owned with specific limitations. This is an open end loan that permits the borrower to repay and re-borrow the funds available.
Home Equity Loan	A mortgage on the borrower's principal residence, usually for the purpose of making home improvements or debt consolidation. This is a closed-end loan repayable in accordance with a fixed schedule.
Home Owners Association	A nonprofit association, whose directors and officers are elected by the unit owners of a condominium or PUD project; primary responsibilities are to manage the common areas, expenses and services of the project.
Housing and Urban Development (HUD)	The U.S. government agency that administers FHA, GNMA and other housing programs.
Housing Debt-to-Income Ratios	The sum of all monthly housing mortgage expenses such as principal, interest, taxes and insurance (PITI), Homeowners dues, private mortgage insurance and any special assessments as a percentage of gross qualifying income.
Index	A published interest rate compiled from other indicators such as U.S. Treasury bills or the monthly average interest rate on loans closed by savings and loan organizations. Mortgage lenders use the index figure to establish rates on adjustable rate mortgages (ARMs).
Initial Rate	The rate charged during the first interval of an ARM loan.
Installment Debt	Borrowed money that is repaid in successive payments, usually at regular intervals.
Interest	Charge paid for borrowing money, calculated as a percentage of the remaining balance of the amount borrowed.
Interest Only Loan	A loan with periodic payments of interest only. The principal amount is due in lump sum(s) upon maturity or intervals.
Interest Rate	The simple interest rate, stated as a percentage, charged by a lender on the principal amount of borrowed money.
Interest Rate Cap	Consumer safeguards that limit the amount the interest rate on an ARM loan can change in an adjustment interval and/or over the life of the loan. For example, if your per-period cap is 1% and your current rate is 7%, then your newly adjusted rate must fall between 6% and 8% regardless of actual changes in the index.
Joint Liability	Liability shared among two or more people, each of whom is liable for the full debt.
Joint Tenancy	A form of ownership of property giving each person equal interest in the property, including rights of survivorship.
Jumbo Loan	A loan that is for a larger dollar amount than the limits set by the Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Corporation (FHLMC) guidelines.
Junior Mortgage	A mortgage subordinate to the claim of a prior lien or mortgage. In the case of a foreclosure, a senior mortgage or lien will be paid first.
Late Charge	Penalty paid by a borrower when a payment is made after the due date.
Lease Purchase Agreement	An agreement whereby the buyer signs a property lease with the intention of purchasing it at a specified price on specified date thereafter.
Lender	The bank, mortgage company, or mortgage broker offering the loan.
Lien	A claim against a property for the payment of a debt. A mortgage is a lien; other types of liens a property might have include a tax lien for overdue taxes, or a court judgment lien, or a mechanics lien for unpaid debt to a contractor.
Lifetime cap	A provision of an ARM that limits the highest rate that can occur over the life of the loan.
Loan Application	An initial statement of personal and financial information required to apply for a loan.
Loan Application Fee	Fee charged by a lender to cover the initial costs of processing a loan application. The fee may include the cost of obtaining a property appraisal, a credit report, and a lock-in fee or other closing costs incurred during the process or the fee may be in addition to these charges.
Loan Origination Fee	Fee charged by a lender to cover administrative costs of processing a loan.
Loan-to-Value Ratio	The relationship expressed as a percentage, between the amount of the proposed loan and a property's appraised value or purchase price.
Lock or Lock-In	A lender's guarantee of an interest rate for a set period of time. The time period is usually that between loan application approval and loan closing. The lock-in protects you against rate increases during that time.
Margin	The amount a lender adds to the index of an adjustable rate mortgage to establish an interest rate. For example, a margin of 1.50 added to a 7 percent index establishes an interest rate of 8.50 percent. The margin remains the same throughout the loan.
Mortgage	A legal instrument in which a lien on real property is granted as security for the repayment of a loan. In some states, a deed of trust is used rather than a mortgage.
Mortgage Banker	An individual or company that originates and/or services mortgage loans.
Mortgage Broker	An intermediary between a borrower and a lender. A broker's expertise is to help borrowers find financing that they might not otherwise find themselves.
Mortgage Commitment	A written notice from the bank or other lending institution saying it will advance mortgage funds in a specified amount to enable a buyer to purchase a house.
Mortgage Insurance	Insurance to protect the lender in case you default on your loan. With conventional loans, mortgage insurance is generally not required if you make a down payment of at least 20% of the home's purchase price. (Note, however, that FHA and VA loans have different insurance guidelines.)
Mortgage Loan	A loan for which real estate serves as collateral to provide for repayment in case of default.
Mortgage Note	Legal document obligating a borrower to repay a loan at a stated interest rate during a specified period of time. The agreement is secured by a mortgage or deed of trust or other security instrument.
Mortgagee	The lender.
Mortgagor	The borrower.
Negative Amortization	A situation in which a borrower is paying less interest than what is actually being charged for a mortgage loan. The unpaid interest is added to the loan's principal. The borrower may end up owing more than the original amount of the mortgage.
Non-assumption Clause	In a mortgage contract, a statement that disallows a new buyer to assume a mortgage payment without the approval of the lender.
Non-conforming Loan	A loan that does not conform to Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Corporation (FHLMC) guidelines either because the loan amount is too high or FNMA/FHLMC underwriting or other criteria are not met. Jumbo loans are non-conforming.
Notice of Default	Written notice to a borrower that default has occurred and that legal action may be taken.
Original principal balance	The total amount of principal owed on a mortgage before any payments are made.
Origination Fee	A fee paid to a lender for processing a loan Application.
Owner financing	A property purchase transaction in which the property seller provides all or part of the financing.
Owner Occupied	"Owner Occupied" means the property is the owner's primary residence.
Payment Cap	Consumer safeguards that limit the amount monthly payments on an adjustable-rate mortgage may change. Since they do not limit the amount of interest the lender is earning, they may cause negative amortization.
Payment to Income (P/I) ratio	The ratio of the borrower's total housing payment (principal, interest, taxes, insurance, HOA fees, special assessments, and subordinate financing) that is used to measure the borrower's capacity to manage the housing expense; also known as "housing debt-to-income ratio."
Per Diem Interest	Interest calculated per day. (Depending on the day of the month on which closing takes place, you will have to pay interest from the date of closing to the end of the month. Your first mortgage payment will probably be due the first day o f the following month.)
Permanent buy-down	A permanent reduction to the interest rate for the life of the loan. The funds for the buy-down may come from the borrower, lender, and seller or a third party.
PITI	Abbreviation for Principal, Interest, Taxes and Insurance, the components of a monthly mortgage payment.
Points	Charges levied by the lender based on the loan amount. Each point is one percent of the loan amount; for example, two points of a $100,000 mortgage is $2,000. Discount points are used to buy down the interest rate. Points can also include a loan origination fee, which is usually one point.
Power of Attorney	Legal document authorizing one person to act on behalf of another.
Prepaid Interest	Interest that is paid in advance of when it is due. Typically charged to a borrower at closing to cover interest on the loan between the closing date and the first payment date. .
Prepayment	The borrower's ability to make full or partial payments on a loan's principal before they are due. Paying a mortgage in full or in part before it is due may incur a penalty if so specified in the mortgage's prepayment clause.
Pre-qualification	Tentative establishment of a borrower's qualification for a mortgage loan amount of a specific amount or ability to make monthly payments at a certain level, based solely on debt-to-income ratios. Pre-qualification is an estimate only and is subject to debt and income verification, credit history, property appraisal and other factors.
Prime rate	The interest rate designated by a lender as its prime rate and which serves as a basis for the interest rate charged to certain customers.
Principal	The amount of the mortgage loan, not counting interest.
Private Mortgage Insurance (PMI)	Insurance to protect the lender in case you default on your loan. With conventional loans, mortgage insurance is generally not required if you make a down payment of at least 20% of the home's purchase price. (Note, however, that FHA and VA loans have different insurance guidelines.)
Purchase Agreemen	Contract signed by buyer and seller stating the terms and conditions under which a property will be sold.
Qualification	As determined by a lender, the ability of the borrower to repay a mortgage loan based on the borrower's credit history, employment history, assets, debts, income and other factors.
Qualifying Ratios	The percentage of payment to income (P/I) and debt-to-income (D/I) that is used to measure the borrower's capacity to repay the mortgage debt.
Real Estate Settlement Procedures Act (RESPA)	A federal law that requires lenders to provide mortgage loan borrowers with information of known or estimated settlement costs.
Realtor	A real estate agent or broker who is a member of the National Association of Realtors.
Rebate	Monies paid from the lender/broker towards the borrower’s non-recurring closing costs which includes appraisals, application fees, underwriting fees, processing fees, and title.
Reconveyance	The transfer of property back to the owner when a mortgage loan is fully repaid.
Recording	The act of entering documents concerning title to a property into the public records.
Recording Fee	Money paid to an agent for entering the sale of a property into the public records.
Refinance	Retirement of an existing debt from the proceeds of a new loan, using the same collateral as security.
Rental Income	Income generated by renting property to a tenant.
Reserves	Sometimes referred to as "cash reserves" or "post closing reserves"; this is the amount of liquid assets the borrower has remaining after completion of the mortgage loan transaction and payment of any other debt(s) that had to be satisfied in order for the borrower to qualify for the loan.
Residential Mortgage Credit Report	This report is prepared only at the request of your mortgage lender. This report utilizes information from at least two of the three national credit bureaus and information provided on your loan application. The report contains verified and updated credit history, employment and residence information, as well as public record information.
Reverse Annuity Mortgage	A Mortgage in which the borrower receives periodic payments from the lender who uses the borrower's equity in the home as security.
Revolving Debt	A debt that does not have a fixed payment, although repayment is usually a percentage of the outstanding balance and made at regular intervals; most common are credit cards issued by banks or department stores.
Right to Rescission	Under the provisions of the Truth-in-Lending Act, the borrower's right, on certain kinds of loans, to cancel the loan within three days of signing a mortgage.
Sales Agreement	Contract signed by buyer and seller stating the terms and conditions under which a property will be sold.
Second Mortgage	A loan that is junior to a primary or first mortgage and often has a higher interest rate and a shorter term.
Self-employed Borrower	A borrower whose income is derived from a business in which he/she has an ownership interest of 25% or more.
Servicing	The responsibility of collecting monthly mortgage payments and properly crediting them to the principal, interest, taxes and insurance, as well as keeping the borrower informed of any changes in the status of the loan.
Settlement (or Closing)	The settlement or closing is the conclusion of your real estate transaction. It includes the delivery of your security instrument, signing of your legal documents and the disbursement of the funds necessary to the sale of your home or loan transaction (refinance).
Settlement Costs	Also known as closing costs, these costs are for services that must be performed before your loan can be initiated. Examples include title fees, recording fees, appraisal fee, credit report fee, pest inspection, attorney's fees, taxes, and surveying fees.
Special Warranty Deed	A deed in which the grantor conveys title to the grantee and agrees to protect the grantee against title defects or claims asserted by the grantor and those persons whose right to assert a claim against the title arose during the period the grantor held title to the property. In a special warranty deed the grantor guarantees to the grantee that he has done nothing during the time he held title to the property which has, or which might in the future, impair the grantee's title.
Subdivision	An area of land that is platted and sub-divided into individual lots.
Survey	A physical measurement of property done by a registered professional showing the boundaries, dimensions and location of any buildings as well as easements, rights of way, roads, etc.
Tax	As applied to real estate, an enforced charge imposed on persons, property or income, to be used to support the State. The governing body in turn utilizes the funds in the best interest of the general public.
Tax Impound	Money paid to and held by a lender for annual tax payments.
Tax Lien	Claim against a property for unpaid taxes.
Tax Sale	Public sale of property by a government authority as a result of non-payment of taxes.
Temporary Buy-downs	A loan on which the interest rate has been "bought down" for a temporary period of time at the beginning of the loan by escrowing funds at the time of closing, which will be applied to the total monthly mortgage payment as each becomes due.
Term	The period of time between the beginning loan date on the legal documents and the date the entire balance of the loan is due.
Title	A formal document establishing ownership of property.
Title Company	A company that insures title to property.
Title Search	Examination of municipal records to ensure that the seller is the legal owner of a property and that there are no liens or other claims against the property.
Townhouse	An architectural type of construction; a row house on a small lot that has exterior limits common to other similar units; title to the unit and its lot is vested in the individual owner with a fractional interest in common areas, if any.
Transfer Tax	Tax paid when title passes from one owner to another.
Trustee	A party who is given legal responsibility to hold property in the best interest of or "for the benefit of" another. The trustee is one placed in a position of responsibility for another, a responsibility enforceable in a court of law.
Underwriter	A professional who approves or denies a loan to a potential homebuyer based on the homebuyers credit history, employment history, assets, debts, property appraisal and other factors such as loan guidelines.
Underwriting	In mortgage lending, the process of determining the risks involved in a particular loan and establishing suitable terms and conditions for the loan.
Uniform Settlement Statement.	A standard document prescribed by the Real Estate Settlement Procedures Act disclosing all costs paid in connection with the settlement of a real estate transaction.
Usury	Interest charged in excess of the legal rate established by law.
Variable Rate