Good Faith Estimate
Document prepared by lender which estimates and delineates the various fees and closing costs associated with the home purchase.
Government Financing
Financing provided from government agencies such as FHA , VA etc .
HELOC
Home Equity Line of Credit. Second mortgage product, generally characterized by interest only payments and the ability to draw, pay back, and redraw.
Home Inspection
Not required by lender. This is a private inspection done by the buyers choice to confirm that the property is in acceptable condition.
Homeowners Association Dues
Amount paid by owner of a townhome or condo to cover various amenities or services provided by the homeowners association (examples -- common areas, hazard insurance, garbage, mowing, snow removal)
Homeowners/hazard Insurance
Insurance which covers damage or loss to the property. The premium is usually paid into an escrow account held by the mortgage company, which then pays the insurance company once a year.
HUD-I (Settlement statement)
Document prepared by title company at closing which shows where all of the money in the transaction was coming from and going to.
Impounds
The portion of the monthly payment that is not applied to principal or interest, but rather is used to pay mortgage insurance, homeowners insurance and property taxes.
Jumbo Loan
Loan with an initial balance greater than $359,650 for a 1-unit property.
Jumbo Pricing
Refers to the fact that rates are generally slightly higher on jumbo loans.
Loan-to-Value (LTV)
Ratio of liens versus value of property or sales price. Ex. 80,000 owed on a property worth 100,000 equals an 80% LTV.
Lock-in Period
Time period that a rate is protected for during the loan process.
Locking in
Choosing to protect a particular rate and program for a specific period of time.