Glossary of terms used on this site
There are 105 entries in this glossary.All
| Term | Definition |
|---|---|
| Department of Veterans Affairs |
See VA. |
| Discount Points |
A dollar amount paid to a lender as a consideration for making the loan and to lower the interest rate. A discount point is equal to 1 percent of the loan amounts. |
| Down Payment |
The amount paid by cash or trade-in toward the purchase price. Generally, lenders waive mortgage insurance (PMI) for down payments of 20% or more. However, there are several loan programs available for buyers with as little as zero down. |
| Duplex |
A form of housing having two residential units under one roof, whether side by side or one above the other on separate floors. |
| Earnest Money |
The money the buyer gives the seller as an intention to buy the property. Earnest money is also known as a deposit. |
| Equity |
The equity in your home is the difference between what your home is worth in today’s market and how much you currently owe on your mortgage. |
| Fannie Mae (FNMA) |
The Federal National Mortgage Association, a major purchaser of loans in the secondary mortgage market. |
| Federal Housing Administration (FHA) |
An agency within the U.S. Department of Housing and Urban Development that administers many loan programs, loan guarantee programs, and loan insurance programs designed to make more housing available. |
| FICO |
The Fair Isaac Company Credit Score that is a measure of borrower credit risk. |
| First Mortgage |
A mortgage that has priority as a lien over all other mortgages. |