Glossary of terms used on this site
There are 105 entries in this glossary.All
| Term | Definition |
|---|---|
| Home Equity Line of Credit (HELOC) |
A mortgage loan that allows the borrower to draw money to a maximum amount at any time during the term. |
| Home Equity Loan |
A loan secured by a second mortgage that covers the equity between the first mortgage and the property value. |
| Homeowner’s Association Dues |
A fee paid by home owners in a particular subdivision, planned unit development or condominium that is used to pay expenses for maintenance on the outside of the dwelling as well as common areas such as pools, clubhouses, etc. |
| HUD |
See Department of Housing and Urban Development. |
| HUD 1 Form |
Otherwise known as the Uniform Settlement Statement, this form is a standardized accounting of all the costs required to close a residential sale. The form clearly delineates the costs that accrue to each party in the transaction. |
| Hybrid ARM |
A mortgage loan that features a fixed interest rate for the first 5 to10 years and then turns into an adjustable rate mortgage for the remainder of the term. |
| Indices |
The products that are used to set interest rates for adjustable rate mortgage loans. Some common mortgage indexes include: the prime lending rate, the one-year constant maturity treasury (CMT) value, the one-month, six-month and 12-month LIBORs, as well as the MTA index, which is a 12-month moving average of the one-year CMT index. |
| Inflation |
A general and progressive increase in prices; when everything gets more valuable except money. |
| Interest |
The amount paid for the use of money. The rate is expressed as a percentage. |
| Interest Rate Cap |
The total number of percentage points that an adjustable rate mortgage (ARM) might rise over the life of the loan. |