Glossary of Terms

Here are just a few of the terms you are likely to see as you seek out a mortgage loan to buy your next home. There are many others. If you see one you don’t understand, just ask us, we’re happy to help.

• Abnormal Transaction
• Absorption Rate
• Active Contingent
• Active – First Right
• Active Kick-out
• Active – No-Show
• Active Option Contract
• Active with Contingencies
• Addendum
• Adjustable Rate Mortgage
• Amortization
• Annual Percentage Rate
• APN
• Appraiser
• Appreciation
• Arms-Length Transaction
• Assessment
• Assumable Mortgage
• Backup Offers
• Balloon Mortgage
• Bridge Loan
• Broker
• Bumpable
• Bump Clause
• Buyer’s Agency Agreement
• Buyer’s Market
• Cash-Out Refinancing
• Certificate of Occupancy
• Closing Costs
• Comparables
• Concessions
• Conforming Loan
• Contingency
• Contingent Offer
• Conventional Loan
• Correspondent Lender
• Debt-to-Income Ratio
• Discount Point
• Earnest Money
• Equity
• Escrow
• Excise Tax
• Exclusive Right
• Fair Market Value
• Fixed-Rate Mortgage
• Foreclosure
• For-Sale-By-Owner (FSBO)
• Home-Equity Line of Credit (HELOC)
• Homeowners Association
• Homeowner’s Insurance
• Inspection
• Lien
• Listing Agent
• List Price
• Loan Commitment Letter
• Mortgage Broker
• Mortgage Insurance
• Mortgage Lender
• Multi-Family
• Multiple Listing Service (MLS)
• Mutual Acceptance
• Negative Amortization Loan
• Notice of Default
• Offer and Acceptance
• Per Diem
• Pending Offer
• Pocket Listings
• Possession: Close of Escrow
• Pre-approval
• Pre-Payment Penalty
• Pre-qualification
• Private Mortgage Insurance (PMI)
• Purchase and Sale Agreement
• Quitclaim Deed
• Radon
• Refinance
• Resale Certificate
• Rescission Notice
• Right of Refusal
• Seller Disclosure
• Seller’s Market
• Settlement
• Short Sale
• Subject to Inspection (STI)
• Survey
• Sweat Equity
• Temporarily Off Market
• Title
• Title Search
• Truth-in-Lending Act
• Turn Key
• Under Contract
• Underwriter
• Upfront Costs
• Walkthrough
• Yield Spread Premium
• Zero Lot Lines