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A provision in a mortgage that gives the lender the right to demand payment of the entire principal balance if a monthly payment is missed.

A mortgage that permits the lender to adjust its interest rate periodically on the basis of changes in a specified index.

A detailed analysis of your ability to afford the purchase of a home. An affordability analysis takes into consideration your income, liabilities, available funds, the type of mortgage you plan to use, the area you want to buy in, and the closing costs you might expect to pay.

The gradual repayment of a mortgage loan by installments.

The cost of a mortgage stated as a yearly rate; includes items like interest, mortgage insurance, and loan origination fee (points).

A written analysis of the estimated value of a property prepared by a qualified appraiser. This is different from a home inspection.

An increase in the value of a property due to changes in market conditions or other causes. The opposite of depreciation.

The valuation placed on property by a public tax assessor for purposes of taxation.

A mortgage that can be taken over ("assumed") by the buyer when a home is sold. Allows a buyer to assume responsibility for the mortgage from the seller without paying it in full.

A mortgage that has level monthly payments that will amortize it over a stated term but provides for a lump sum payment to be due at the end of an earlier specified term.

A mortgage structured like a traditional fixed-rate mortgage but with payments every 14 days instead of once a month. Results in 26 biweekly payments per year — equivalent to 13 monthly payments — and pays off a 30-year loan in ~22 years.

A form of second trust collateralized by the borrower's present home that allows proceeds to be used for closing on a new house before the present home is sold. Also known as a "swing loan".

A person who, for a commission or fee, brings parties together and assists in negotiating contracts between them.

A temporary buydown reduces a borrower's monthly payments during the first few years of the mortgage. A permanent buydown reduces the interest rate over the entire life of the mortgage.

A provision of an adjustable-rate mortgage that limits how much the interest rate or mortgage payments may increase or decrease.

Your ability to repay the mortgage debt you incur. Lenders evaluate capacity based on employment info, income, expenses, and other debt obligations.

Any structure or component erected as a permanent improvement to real property that adds to its value and useful life.

A refinance transaction in which the amount of money received from the new loan exceeds the total needed to repay the existing mortgage, closing costs, points, and any outstanding subordinate liens — so the borrower receives additional cash.

Fees paid at the close of a real estate transaction, typically 2-5% of the loan amount.

A condition in a purchase agreement that must be met for the transaction to proceed.

A deposit made to show the buyer's good faith commitment to purchasing a home.

The difference between a home's market value and the amount owed on the mortgage.

An account held by a neutral third party that holds funds or documents until the transaction is complete.

A mortgage in which the interest rate does not change during the entire term of the loan.

A professional evaluation of a home's condition, typically performed before purchase. Different from an appraisal.

The shared database of properties listed by real estate agents, used to market homes to the widest possible audience.

Insurance required by lenders when a buyer's down payment is less than 20% of the purchase price.

A lender's preliminary commitment to offer a mortgage up to a specified amount, based on a review of the borrower's credit, income, and assets.

Insurance that protects the buyer and lender from defects in the property's title, such as liens, encumbrances, or competing claims of ownership.

The final inspection before closing, conducted by the buyer to ensure the home is in the agreed-upon condition.