A loan that is paid off in equal installments during its term.
Appraisal
A professional analysis, including references to sales of comparable properties, used to estimate the value of the property.
Closing Costs
Expenses incurred for the purpose of closing a real-estate or mortgage transaction. Closing costs include: attorney's fees, recording charges, survey fees, lender fees, discount points, and appraisal fees.
Earnest Money
Money that accompanies an offer made on a property. This money is applied to the down payment at closing. If the offer is not accepted, earnest money is returned.
Escrow
Funds collected with each mortgage payment and help by the bank to pay real estate taxes and insurance.
Homeowners Insurance
Insurance that home buyers must have in order to protect investment in the property.
Loan Origination Fee
The fee for processing a loan application.
Mortgage Insurance
This insurance protects the lender from possible loss if the borrower defaults on the loan.
PITI
PITI stands for principal, interest, taxes, and insurance. Many mortgages are set up with monthly loan payments to include these elements.
Title Insurance
Insurance that protects lenders and homeowners against loss of their interest in the property because of any legal problems with the title.
