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E
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| Earthquake strap |
A metal strap used to secure gas hot water heaters to the framing or foundation of a house. |
| Easement |
An agreement that allows a party to use a portion of your property for a specific purpose. |
| Equity |
The difference between the current market value of a home and the total mortgage owed on the same home. |
| Escrow |
A transaction in which a third party acts as the agent for seller and buyer or for borrower and lender in handling legal documents and disbursement of funds. |
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| F |
| Fannie Mae |
A company created by the U.S. government to buy home loans from mortgage companies, allowing more loans to be made. |
| FHA |
The Federal Housing Administration, which insures mortgage loans made by approved lenders in accordance with FHA regulations. |
| First mortgage |
A mortgage that will be paid first from proceeds from the sale of the home if a homeowner defaults on payments. |
| Fixed rate |
An interest that doesn't change for the term of the loan. |
| Fixed-price contract |
A contract with a set price for the work. |
| Footing |
A widened base of a foundation wall or a concrete poured foundation. |
| Framing |
The structural wood and/or metal elements of most homes. |
| FSBO |
A home that is for sale by owner; being sold without a real estate agent. |
| Fuse |
A device found in older homes designed to prevent overloads in electrical lines. |
| G |
| GFI or GFCI |
See ground fault current interrupter. |
| Good-faith estimate |
Written estimate of the settlement costs the borrower will likely have to pay at closing. |
| Grace period |
The period of time during which a loan payment may be made after its due date without incurring a late penalty. |
| Gross income |
Your total income before taxes or expenses are deducted. |
| Ground fault current interrupter |
An electrical device built into normal electrical outlets that can prevent injury from contact with electrical appliances. Required in new homes in bathrooms, kitchens, garages and outdoors. |
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| HI |
| Hardwood |
A very durable type of wood from broad-leaved trees, such as oak or maple, commonly used for floors and furniture. |
| Impound account |
An account held by a lender to which the borrower pays monthly installments, collected as part of the monthly mortgage payment, for annual expenses such as taxes and insurance. The lender disburses impound account funds on behalf of the borrower when the expenses are due. |
| Interest |
The charge paid for borrowing money, calculated as a percentage of the remaining balance of the amount borrowed. |
| Interest rate |
The annual rate of interest on the loan, expressed as a percentage of 100. |
| JK |
| Jamb |
An exposed frame that retains a window or door. |
| Joists |
A type of framing that makes up floors and ceilings. |
| L |
| Lath |
One of a number of thin narrow strips of wood nailed to rafters, ceiling joists, wall studs, and so on to make a groundwork or key for slates, tiles, or plastering. |
| Lien |
A legal claim by one person on the property of another for security for payment of a debt. |
| Load-bearing wall |
A wall that is supporting other parts of a home such as the roof or a second story. |
| Loan origination fee |
A Fee charged by a lender to cover the administrative costs of processing a loan. |
| Loan-to-value ratio (LTV) |
The percentage of the loan amount compared to the appraised value (or the sales price, whichever is less) of the property. |
| M |
| Market value |
The price that a buyer can buy a home from a seller. |
| Moisture barrier |
Treated paper or metal that prevents water or water vapor from coming in contact with the protected material. |
| Molding |
A strip of decorative material having a plain or curved narrow surface. These strips are often used to hide gaps at wall junctures. |
| Mortgage |
A legal document by which real property is pledged as security for the repayment of a loan. |
| Mortgage insurance |
Insurance to protect the lender in case you default on your loan. Also called private mortgage insurance. (PMI) |
| Multiple Listing Service (MLS) |
A directory where member real estate agents can advertise the homes that they have listed. |
| N |
| Negative amortization |
A loan payment schedule that causes the principal balance of a loan to increase instead of decrease. |
| Note |
A legal document obligating a borrower to repay a loan at a stated interest rate during a specified period of time. |
| O |
| Open listing |
A listing under which the principal (owner) reserves the right to list his property with other brokers. |
