Mortgage Terms

A, B, C, D-E, F-G, H-K, L-M, N-Q, R-S, T-Z

 

Hazard Insurance
insurance on a property against fire and other natural disasters. Areas prone to flood, hurricanes, or earthquakes may require special policies.

Homeowner's Fees (Association Fees)
payments made by the owners of a condominium or a unit in a PUD to the homeowners' association for administrative expenses, and cost incurred in upkeep of the common areas.

Homeowner's Insurance
a policy that combines personal liability insurance and hazard insurance for a home and its contents. Such a policy is generally required to obtain a loan.

Housing and Urban Development (HUD)
the federal government agency that oversees the FHA.

HUD 1
a closing document required by HUD that outlines the settlement cost of a loan. It contains an itemized list of closing costs and is signed by the buyer and the seller. Also called a settlement statement.

Hybrid Mortgage
a mortgage with a one-time rate adjustment after a specified number of years.I

Impound Account
an account held by a lender for payment of taxes, insurance or other related expenses.

Index
a public measure of current interest rate levels used by lenders to calculate the rate on an adjustable rate mortgage.

Insured Mortgage
a mortgage insured against loss to the mortgagee in the event of default.

Interest Rate
the percentage added to a loan that covers the lenders' costs for supplying money. This amount is part of an APR.

Interest Payment Notification (1098)
a federal tax form (1098) used to notify borrowers of the interest that they paid on their mortgage over the course of the year.

Joint Tenancy
an interest in property taken by two or more joint tenants.

Jumbo Mortgage
a mortgage that does not conform to the limits (currently a maximum of $240,000) set forth by Fannie Mae and Freddie Mac.

Junior Mortgage
a mortgage subordinate to another mortgage. An example would be a second mortgage or home equity line, which is subordinate to a first mortgage.