Pre-approved / pre-approval

Definition: pre-approval Pre-approval is the evaluation of a potential borrower by a lender to determine whether the borrower qualifies for... read more →

Payment cap

Definition: payment cap A payment cap is a set upper-limit on the interest rate to protect you when getting an adjustable-rate... read more →

Mortgage insurance

Definition: mortgage insurance Mortgage Insurance is a policy that compensates lenders or investors for any losses incurred due to the... read more →


Definition: lien A lien is a legal right to the possession of a property owned by another person until a debt owed by... read more →

Jumbo loan definition

Definition: jumbo loan / jumbo mortgage A jumbo loan, or jumbo mortgage, is a home loan that exceeds conforming loan... read more →

What’s a HUD loan?

Definition: HUD loan HUD loans are made available for people who are dedicated to financial responsibility and restoring their financial... read more →

What is MLS?

Definition: MLS (multiple listing service) A multiple listing service, or MLS, is a service that provides a searchable database of property... read more →

Home Price Index

Definition: home price index A home price index is a tool that measures changes in single-family home prices in a... read more →

Fair Market Value

Definition: fair market value Fair market value is the estimate of the market value of a property. FMV is based... read more →

What is an FHA loan?

Definition: FHA Loan A FHA loan is a mortgage issued by federally qualified lenders and insured by the FHA. FHA loans... read more →

What does FHA stand for?

Definition: FHA FHA stands for Federal Housing Administration. The Federal Housing Administration is a government agency that sets standards for construction, underwriting,... read more →

What is escrow?

Definition: escrow Escrow is the monetary assistance offered by a third-party on behalf of the transacting parties.

What is equity?

Definition: equity Also known as real property value, equity is the amount the owner would receive after the property is... read more →

Definition of earnest

Definition: earnest Earnest, or earnest money, is an amount of money paid to confirm a contract.

What is a credit?

Definition: credit (loan related) Credit is a contractual agreement when a borrower receives something of value now and agrees to... read more →

Definition of closing

Definition: closing Closing is the final step in a real estate transaction, also known as a completion or settlement.

What is a closing statement?

Definition: closing statement A closing statement is a document used in real estate transaction, which details the fees, commissions, insurance,... read more →

What is a co-borrower?

Definition: co-borrower A co-borrower is any additional borrow whose name will appear on loan documents and whose income and credit... read more →

What is capital gains tax?

Definition: capital gains tax Capital gains tax is the amount of money taxed on a capital gain.

What are capital gains?

Definition: capital gains Capital gains are the profits from the sale of a property or an investment.

Define buyer’s agent

Definition: buyer's agent A buyer's agent is a person who represents a buyer when they purchase a home.

What is a buydown?

Definition: buydown A buydown is a mortgage-financing technique where the buyer tries to obtain a lower interest rate for at least... read more →

What is assessed value?

Definition: assessed value Assessed value is the dollar value assigned to a property to measure taxes.

Define asset appreciation

Definition: asset appreciation Appreciation is the increase in value of an asset over time.

What is amortization?

Definition: amortization Amortization is the act of paying off of debt with a fixed repayment schedule in regular installments over... read more →

Define refinance

Definition: refinance To refinance is to take out a new loan on different terms, often to lower your payment, shorten... read more →

What is accrued interest?

Definition: accrued interest Accrued interest is the interest on a bond or loan that has accumulated since the principal investment.
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