Definition: deed of trust A deed of trust is a deed where a legal title in real property is transferred to a trustee, who holds it as security for a loan.
Definition: credit (loan related) Credit is a contractual agreement when a borrower receives something of value now and agrees to repay the lender in the future.
Definition: contingency A contingency is a provision in a real estate contact that details that the contract would cease to exist in the event of a certain occurrence.
Definition: construction loan A construction loan is a short-term loan which is used to finance building a home or other real estate project.
Definition: closing agent A closing agent is an impartial third party who oversees the final details of a real estate transaction.
Definition: closing Closing is the final step in a real estate transaction, also known as a completion or settlement.
Definition: closing statement A closing statement is a document used in real estate transaction, which details the fees, commissions, insurance, and other such fees that must be transacted for a transfer of ownership.
Definition: co-borrower A co-borrower is any additional borrow whose name will appear on loan documents and whose income and credit history are used for loan qualification.
Definition: cash out refinance A cash out refinance is the replacement of your first mortgage, where the interest rate is usually lower than the interest rate on a home equity loan.
Definition: capital gains tax Capital gains tax is the amount of money taxed on a capital gain.
Definition: capital gains Capital gains are the profits from the sale of a property or an investment.
Definition: buyer's agent A buyer's agent is a person who represents a buyer when they purchase a home.
Definition: buydown A buydown is a mortgage-financing technique where the buyer tries to obtain a lower interest rate for at least the first few years of the mortgage.
Definition: bridge loan A bridge loan is a sum of money lent by a bank to cover an interval between two transactions.
Definition: balloon mortgage A balloon mortgage is a type of mortgage where a large portion of the borrowed principal is repaid in one payment at then end of the loan period.
Definition: assumable mortgage An assumable mortgage is a type of financing arrangement in which the outstanding mortgage and its terms can be transferred from one buyer to another.
Definition: assessed value Assessed value is the dollar value assigned to a property to measure taxes.
Definition: asset appreciation Appreciation is the increase in value of an asset over time.
Definition: amortized cost Amortized cost is the portion of the recorded cost of a fixed asset that has been charged to expense through either amortization or depreciation.
Definition: amortization Amortization is the act of paying off of debt with a fixed repayment schedule in regular installments over time.
Definition: refinance To refinance is to take out a new loan on different terms, often to lower your payment, shorten your term, or use the equity you've built up over time to get cash back from your home.
Definition: fixed-rate mortgage A fixed-rate mortgage is a fully amortizing loan, whose interest rate remains that same throughout the life of the loan
Definition: ARM (adjustable rate mortgage) An adjustable-rate mortgage is a mortgage type where the interest rate that is applied on the outstanding balance varies throughout the life of the loan
Definition: accrued interest Accrued interest is the interest on a bond or loan that has accumulated since the principal investment.