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Buying a HouseFramingPlumbingElectricalLawn & Garden



Meeting with Mortgage Broker



Buying a House
...continued

Terms In Alphabetical Listings:

Abstract
Addendum
Adjustable Rate Mortgage
Annual Percentage Rate
Cap
CC&Rs
Closing
Construction Loan
Contingency
Contract for Deed
Conventional Mortgage
Covenant
Disclosure Statement
Earnest Money
Escrow
Fixture
Good Faith Estimate
Joint Tenants
Lien
Loan-To-Value Ratio
Lock, or Lock in
Maintenance Fee
PITI
Point
Redlining
Special Assessment
Tenants in Common


Escrow
Money held by a disinterested third party until the terms of an agreement are met. Back to alphabetical list


Fixture
Any item attached to the house, lights, sinks, woodwork, etc., is considered to be part of the property and included in the sale of the property. Back to alphabetical list


Good Faith Estimate (GFE)
An estimate of closing costs provided by the lender to the buyer. Back to alphabetical list


Joint Tenants
Two unrelated people who jointly own a property that will pass to the survivor when the other dies, even if this is not stated in a will. See also Tenants in common. Back to alphabetical list


Lien
A financial claim made against a property that must be settled before the title can change hands. Back to alphabetical list


Loan-To-Value Ratio (LTV)
The amount of the loan in ratio to the assessed value of the property. If the LTV is more than 80% mortgage insurance will likely be required by the lender. Back to alphabetical list


Lock, or Lock In
The point prior to closing at which you commit to a mortgage interest rate so long as the mortgage closes within a specified time period. If the lock period expires prior to closing, lender and would-be mortgagee must negotiate a new deal. Back to alphabetical list


Maintenance Fee
The monthly amount paid by owners of condos, townhouses, and other commonly owned properties to cover the repair and maintenance of common areas including lobbies, grounds, and exterior surfaces. Back to alphabetical list


PITI
Principle, interest, tax, and insurance. The elements that comprise a monthly mortgage payment. (Lenders frequently collect and escrow money to pay the insurance and property taxes when the LTV is over 80 percent.) Back to alphabetical list


Point
The amount paid to the lender to secure a lower interest rate. A point is equal to 1 percent of the loan amount. Back to alphabetical list


Redlining
An illegal practice in which certain neighborhoods—usually poor, inner-city neighborhoods with run-down housing stock—are defined by lenders and builders as areas in which mortgages will not be issued. Back to alphabetical list


Special Assessment
Charges for projects such as street lighting, paving, and sewer work that must be settled at closing. Back to alphabetical list


Tenants in Common
Two unrelated people jointly own a property without right of succession. In other words, if one owner dies, his/her share of the property passes to heirs, not necessarily the co-owner. Back to alphabetical list


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