Terminology

Payment of a debt in equal periodic installments of principal and interest.

A note calling for periodic payments which are insufficient to fully amortize the face amount of the note prior to maturity, so that a principal sum known as a "balloon" is due at maturity.

A report issued by a title insurance company setting forth the condition of title to certain property as of a certain date, and also setting forth conditions which, if satisfied, will cause a policy of title insurance to be issued (also referred to as a "commitment").

The chronological order of conveying of a parcel of land, from the original owner to the present owner.

The document listing the Borrower’s loan information, credits and charges involved in the transaction. click here ›

An instrument recorded to create a lien against real property, securing the repayment of a loan. Property is transferred to a trustee by the borrower/trustor in favor of the lender/beneficiary, and reconveyed upon payment in full. click here ›

Account held by a lender for payment of taxes, insurance or other periodic debts related to real property.

Also called homeowners insurance, protects against losses caused by damage to or destruction of a property, depending on the terms of the policy.

A document prepared by a lender showing what a borrower may reasonably expect to pay at settlement.

Insurance written by an independent mortgage insurance company, protecting the lender against loss incurred by a mortgage default.

Principal, interest, taxes and insurance; the four components of a monthly mortgage payment.

A real estate project in which individuals hold title to a residential lot, while the common facilities are owned and maintained by a homeowners' association for the benefit and use of the individual PUD unit owners.

A map dividing a parcel of land in to lots, as in a subdivision.

A penalty under a note, mortgage or deed of trust, imposed when the loan is paid before it is due.

A written promise, executed by the maker, to pay a specified amount during a limited time or on demand, to a named person, or order or bearer. click here ›

Filing instruments for public record and notice with a recorder of deeds.

Taxes collected by the county/city and state for the recordation of documents.

The act of making an existing mortgage, secondary in priority to a new mortgage. Borrowers refinancing their primary mortgage can normally maintain an existing home equity loan so long as the home equity loan lender agrees to have its mortgage subordinated to the new primary mortgage.

A scale drawing of a parcel of real property depicting the improvements and other characteristics.

An inspection of property by a buyer very close to the time for closing to determine that the condition of the property has not changed since the purchase contract as executed or that promised changes have been made.

A legal document evidencing the transfer of title to real property, as well as the nature of ownership.