Mortgage terms and definitions for
home buyers, home sellers, and real estate consumers. Use
the links below to find the word you're looking for.
Cash loan to a borrower.
A form of insurance in which the insurance company protects
the insured from certain losses, such as fire, vandalism,
storms and certain other natural causes.
Equity Conversion Mortgage (HECM) -
Also known as the reverse annuity mortgage. This mortgage
provides that instead of making payments to a lender, the
lender makes payments to the individual. Older homeowners
are able to convert home equity into cash this way, in the
form of monthly payments. Borrowers don't qualify on the
basis of income, but on the value of his or her home. Such
a loan does not have to be repaid until the borrower no
longer occupies the property.
equity line of credit -
A mortgage loan in second position that allows a borrower
to obtain cash drawn against home equity, up to a certain
A thorough assessment by a professional regarding the structural
and mechanical condition of a property.
An insurance policy that combines personal liability insurance
and hazard insurance for a home and its contents.
An insurance policy that is purchased by a buyer that covers
certain repairs, should they be necessary over a certain
The ratio of the monthly housing payment to total gross
monthly income. Also called Payment-to-Income Ratio or Front-End
Department of Housing and Urban Development; regulates Fannie
Mae and Ginny Mae.
The joining together of two forms of finance, such as combining
a convertible loan with a participation loan, under which
the lender has the right at loan maturity to convert the
debt to a 50 percent ownership in the property.