the date when both parties, seller and buyer, have agreed to and completed signing and/or initialing the contract.

a mortgage that permits the lender to adjust the mortgage’s interest rate periodically on the basis of changes in a specified index. Interest rates may move up or down, as market conditions change.

a loan that is paid in equal installments during its term.

an estimate of real estate value, usually issued to standards of FHA, VA and FHMA. Recent comparable sales in the neighborhood is the most important factor in determining value

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

purchaser takes ownership to real estate encumbered by an existing mortgage and assumes responsibility as the guarantor for the unpaid balance of the mortgage.

document used to transfer title (ownership) of PERSONAL property.

any condition that affects the clear title to real property.

anything of value to induce another to enter into a contract, i.e., money, services, a promise.

a written instrument, which when properly executed and delivered, conveys title to real property.

a loan fee charged by a lender of FHA, VA or conventional loans to increase the yield on the investment. One point = 1% of the loan amount.

the right to use the land of another.

anything that burdens (limits) the title to property, such as a lien, easement, or restriction of any kind.

the value of real estate over and above the liens against it. It is obtained by subtracting the total liens from the value.

nickname for Federal National Mortgage Corporation (FNMA), a tax-paying corporation created by congress to support the secondary mortgages insured by FHA or guaranteed by VA, as well as conventional loans.

an agency of the U.S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting but does not lend money or plan or construct housing.

a loan that fixes the interest rate at a prescribed rate for the duration of the loan.

procedure whereby property pledged as security for a debt is sold to pay the debt in the event of default.

a written promise to pay a certain amount of money.

an insurance policy that protects the insured (buyer or lender) against loss arising from defects in the title.