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FHA Mortgage-- A mortgage loan insured by the Federal Housing Administration, permitting lenders to offer better terms.

Fixed Rate Mortgage-- A loan that has only one stated interest rate.

Hybrid loans-- Loans that combine features of fixed-rate and adjustable-rate mortgages.

HUD-- Housing and Urban Development-- A U.S. government agency established to implement certain federal housing and community development programs.

Lien-- A legal claim against a property that must be paid when property is sold.

Loan Origination Fee--  The charge you must pay to the lender for processing your mortgage.

Market Value-- The highest price a ready, willing and able buyer will pay and the lowest price a seller will accept.

Mortgage-- A lien on real estate given by the buyer as security for money borrowed from a lender.

Mortgage Insurance-- A policy that provides protection for the lender in case of default and guarantees repayment of the loan in the event of death or disability or the borrower.

Mortgage Insurance Premium-- A charge paid by the borrower (usually as part of the closing costs) to obtain financing, especially when making a down payment of less than 20% of the purchase price, for example on an FHA-insured loan.

MLS-- Multiple Listing Service.

Points-- A dollar amount, expressed as a percentage of the mortgage amount, which is paid to a lender as a consideration for making a loan.  A point is 1% of the amount of the mortgage loan; also called discount points.

P&I-- Principal and Interest Payment-- A periodic (usually monthly payment) that includes the interest charges for the period plus an amount applied to amortization of the principal balance.

PITI-- Principal, Interest, Taxes and Insurance Payment--  The periodic payment that includes the principal and interest payment plus a contribution to the escrow account set up by the lender to pay insurance premiums and property taxes on the mortgage property.

Property Taxes-- Taxes (based on the assessed value of the home) paid by the homeowner for community services such as schools, public works, and other costs of local government.

REALTOR^® and REALTOR ASSOCIATE^®-- Registered collective membership marks that identify real estate professionals who are members of the National Association of REALTORS and subscribe to its strict Code of Ethics.

Title-- A document that is evidence of ownership.

Title Insurance-- Protection for lenders and homeowners against financial loss resulting from legal defects in the title.

Title Search -   A check of title records to identify liens, encumbrances and ownership rights to the property.

VA Mortgage-- A mortgage loan guaranteed by the Veterans Administration, an agency of the federal government that provides services for eligible veterans.

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**Glossary of Real Estate Terms!

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