Real Estate
Buying, owning, and borrowing against a home.
A home is the biggest purchase most people make. These terms cover mortgages, equity, and the costs of owning, so the biggest financial decision of your life rests on numbers you understand.
All Real Estate terms(24)
- Adjustable-Rate Mortgage (ARM)A home loan whose interest rate can rise or fall over time, so your monthly payment may change after an initial fixed period.
- Annual Percentage Rate (APR)The full yearly cost of a loan, including the interest rate plus lender fees, giving a truer picture than the rate alone.
- AppraisalA professional estimate of a home's market value, required by lenders to confirm the price matches the loan amount.
- Closing CostsThe fees paid to finalize a home purchase, covering things like appraisal, title work, and loan processing.
- DeedThe legal document that transfers and proves ownership of a property from one party to another.
- Down PaymentThe upfront cash you pay toward a home's price, with the rest covered by your mortgage loan.
- Earnest MoneyA good-faith deposit you put down when making an offer to show a seller you are serious about buying.
- EscrowA neutral holding account managed by a third party for funds like property taxes and insurance until they are due.
- FHA LoanA government-backed mortgage with lower down payment and credit requirements, aimed at first-time and lower-income buyers.
- Fixed-Rate MortgageA home loan whose interest rate stays the same for the entire term, keeping your monthly payment predictable.
- ForeclosureThe legal process where a lender takes back and sells a home after the borrower falls too far behind on mortgage payments.
- Home EquityThe share of your home you truly own, equal to its market value minus what you still owe on the mortgage.
- Home Equity Line of Credit (HELOC)A revolving credit line borrowed against your home's equity that you can draw from and repay as needed.
- Home InspectionA detailed check of a home's condition by a professional to uncover problems before you commit to buying.
- Homeowners Association (HOA)An organization in some communities that sets rules and charges fees for shared upkeep of common areas and amenities.
- Loan-to-Value Ratio (LTV)The size of your loan compared to the home's value, used by lenders to gauge risk and set terms.
- MortgageA loan used to buy a home, where the property itself acts as collateral the lender can take if you stop paying.
- Mortgage InsuranceA charge that protects the lender if a borrower stops paying, required on certain low-down-payment and government-backed loans.
- PointsUpfront fees you can pay a lender at closing to lower your mortgage interest rate, each point costing one percent of the loan.
- Pre-ApprovalA lender's written estimate of how much they will lend you, based on a review of your finances before you shop for a home.
- Private Mortgage Insurance (PMI)An added monthly fee lenders require when your down payment is under 20 percent, protecting them if you default.
- Rent vs. BuyThe decision of whether renting or buying a home makes more financial sense given your budget, timeline, and local prices.
- Title InsuranceCoverage that protects you and the lender against hidden ownership claims or legal disputes over a property.
- VA LoanA mortgage backed by the Department of Veterans Affairs that lets eligible service members and veterans buy with no down payment.