MORTGAGE DICTIONARY

A loan which is made as a last resort for borrowers who cannot obtain financing in the standard market due to poor credit.

A refinance loan for borrowers with negative equity.

Insurance in which the insurance company protects the insured from specific losses, such as fire, windstorm and the like.

A long extended to borrowers with poor credit history or that fall outside the conventional or conforming loan limits which are set by Fannie Mae and Freddie Mac.

A line of credit that uses the value of a property as collateral.

An organization that creates and maintains bylaws and rules regarding a certain housing development. Homeowners within the project must pay dues to the HOA usually monthly or yearly.

An insurance policy that insures the home being purchased in the case of fire or other hazards.

A document received prior to the signing of final loan paperwork at escrow. It is a breakdown of all fees associated with the loan and tells you're the final dollar amount you need to pay in order to close the loan.