Click on a link below
for an alphabetized list of Real Estate and Mortgage
Terms.
A
| B | C
| D | E
| F | G
| H | I
| J | L
| M | N
| O | P
| Q | R
| S | T
| U | V
| W | Y
| Z
Hazard insurance
Insurance coverage that in the event of physical damage
to a property from fire, wind, vandalism, or other hazards.
Home Equity Conversion Mortgage (HECM)
Usually referred to as a reverse annuity mortgage, what
makes this type of mortgage unique is that instead of
making payments to a lender, the lender makes payments
to you. It enables older home owners to convert the
equity they have in their homes into cash, usually in
the form of monthly payments. Unlike traditional home
equity loans, a borrower does not qualify on the basis
of income but on the value of his or her home. In addition,
the loan does not have to be repaid until the borrower
no longer occupies the property.
Home equity line of credit
A mortgage loan, usually in second position, that allows
the borrower to obtain cash drawn against the equity
of his home, up to a predetermined amount.
Home inspection
A thorough inspection by a professional that evaluates
the structural and mechanical condition of a property.
A satisfactory home inspection is often included as
a contingency by the purchaser.
Homeowners' association
A nonprofit association that manages the common areas
of a planned unit development (PUD) or condominium project.
In a condominium project, it has no ownership interest
in the common elements. In a PUD project, it holds title
to the common elements.
Homeowner's insurance
An insurance policy that combines personal liability
insurance and hazard insurance coverage for a dwelling
and its contents.
Homeowner's warranty
A type of insurance often purchased by homebuyers that
will cover repairs to certain items, such as heating
or air conditioning, should they break down within the
coverage period. The buyer often requests the seller
to pay for this coverage as a condition of the sale,
but either party can pay.
HUD median income
Median family income for a particular county or metropolitan
statistical area (MSA), as estimated by the Department
of Housing and Urban Development (HUD).
HUD-1 settlement statement
A document that provides an itemized listing of the
funds that were paid at closing. Items that appear on
the statement include real estate commissions, loan
fees, points, and initial escrow (impound) amounts.
Each type of expense goes on a specific numbered line
on the sheet. The totals at the bottom of the HUD-1
statement define the seller's net proceeds and the buyer's
net payment at closing. It is called a HUD1 because
the form is printed by the Department of Housing and
Urban Development (HUD). The HUD1 statement is also
known as the "closing statement" or "settlement
sheet."
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