Understand the most important lending and mortgage terms. Mortgages can be confusing for the first time home buyer, so let us help explain. Below you'll find explanations for most of the mortgage industry terms.

What is Hazard insurance? Protects the insured against loss due to fire or other natural disaster in exchange for a premium paid to the…
Written by Henry Gilbert
What is Home equity loan? A loan secured by equity in a property. These are sought for a variety of purposes, including home improvements, major purchases or expenses and debt consolidation. Interest paid is usually…
Written by Henry Gilbert
What is Homeowners Insurance? Homeowners insurance is a specific type of insurance policy that protects homeowners against losses and damage caused by perils such as fires, storms, or burglary. It also covers legal costs if…
Written by Henry Gilbert
What is Homeowners warranty? A type of insurance that covers repairs to specified parts of a house for a specific period of…
Written by Henry Gilbert
What is Housing and Urban Development (HUD)? A U.S. government agency established to implement federal housing and community development programs; oversees the Federal Housing…
Written by Henry Gilbert
What is Housing code? Local government ordinance that sets minimum standards of safety and sanitation for existing residential…
Written by Henry Gilbert
What is Housing Expense Ratio? The percentage of gross monthly income budgeted to pay housing…
Written by Henry Gilbert
What is Housing expense-to-income ratio? The ratio, expressed as a percentage, that results when a borrower's housing expenses are divided by his/her monthly…
Written by Henry Gilbert
What is HUD? See Housing and Urban…
Written by Henry Gilbert
What is HUD-I settlement statement? A document that provides an itemized listing of the funds that are payable at closing. Items that appear on the statement include real estate commissions, loan fees, points, and initial escrow…
Written by Henry Gilbert
What is Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)? A combination fixed rate and adjustable rate loan - also called 3/1,5/1,7/1 - can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than…
Written by Henry Gilbert


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