- Half-bath Also called a powder room, a half-bath contains a toilet and a sink but no bathtub or shower stall.
- Hazard insurance This provision of homeowners insurance covers damage by fire, wind or other disaster. It is required by all lenders before a loan is approved.
- Header Crossbeams above windows and doors.
- Heat pump An electric cooling and heating system.
- Hectare The equivalent of 2.471 acres.
- High density The concentration of housing units in a specific area or on a specific property.
- High-rise Any building higher than six stories.
- Hip roof A pitched roof with sloping sides.
- Historic preservation The physical rehabilitation of a historic home or building, and the movement of the same name begun in the 1960s in the U.S. to preserve and protect landmarks and urban neighborhoods.
- Historic structure A home or building listed in the National Register of Historic Places and certified as historic by the U.S. Secretary of the Interior.
- Home equity conversion mortgage Loans made to older owners who want to convert equity into money. Because borrowers are qualified on the basis of the value of their home, e, the loan is not the same as a home equity loan. Also known as reverse mortgages.
- Home equity loan A loan that allows owners to borrow against the equity in their homes.
- Home inspection An examination of a home's construction, condition and internal systems by an inspector or contractor prior to purchase.
- Homeowners' association A group that governs a modern subdivision or planned community. An association collects monthly fees from all owners to pay for maintenance of common areas, handle legal and safety issues, and enforce the covenants, conditions and restrictions set by the developer.
- Homeowners' insurance This insurance includes hazard coverage for any damages that may affect the value of a house, in addition to personal liability and theft coverage.
- Homeowners' warranty Special insurance policies that cover certain home repairs for a specified amount of time.
- Home rule The power of a local government to adopt its own land-use regulations.
- Homesteading A document that to protects some of a home's equity from lawsuits.
- Home warranty A type of insurance that covers repairs to certain parts of a house and some fixtures.
- Hopper window A window that contains a single sash that tilts inward.
- Hose bibb A threaded faucet connection for devices such as a washing machine.
- Housing discrimination The illegal practice of denying an individual or group the right to buy or rent a home based on race, color, religion, national origin, sex, disability or family status.
- Housing expense ratio The percentage of gross monthly income devoted to housing costs.
- House wrap A polyethylene barrier wrapped around a house to save energy.
- HUD-1 Uniform Settlement Statement A closing statement or settlement sheet that outlines all closing costs on a real estate transaction or refinancing.
- Impact fees Fees collected from developers of new homes to pay for schools, parks and other facilities.
- Implied warranty of habitability Court cases which determined that all new homes are assumed to be fit for human habitation and meet all building codes.
- Impounds A portion of the monthly mortgage payment that is placed in an account and used to pay for hazard insurance, property taxes and private mortgage insurance.
- Income property Property that is not occupied by the owner but is used to generate income.
- Incurable defect A defect in a property that cannot be fixed, such as an adjacent hazardous waste site, or that would cost too much to repair relative to the value of the property.
- Index Financial tables used by lenders to calculate interest rates on adjustable mortgages and on Treasury bills.
- Individual Retirement Account Tax-deferred savings accounts that allow people to accrue retirement funds.
- In-file credit report Computer-generated reports drawn from credit repositories that are generally regarded as objective histories.
- Infill development Any significant new construction in an established area.
- Infill housing Home construction in established areas.
- Inflation This event occurs when there is more money available than there are goods and services to be purchased. Mortgage rates, which are determined by the marketplace and the actions of the Federal Reserve Board and Wall Street, are sensitive to inflation fears.
- Infrastructure The roads, schools, parks, utilities, bridges and communications systems in a community.
- Initial interest rate The original interest rate on an adjustable mortgage.
- Inspection report An examination of a home's exterior, foundation, framing, plumbing, electrical system, heating, air conditioning, fireplace, kitchen, bathroom, roofing and interior.
- Installment contract A purchase agreement in which the buyer does not receive title to the property until all installments are paid.
- Insulation Materials including cellulose, glass fiber, rock wool, polystyrene, urethane foam and vermiculite that slow heat loss.
- Insurable title Title to property that a company agrees to insure against defects and disputes.
- Insurance Owners and buyers can purchase various types of insurance: hazard, private mortgage and earthquake. The policies guarantee compensation for specific losses.
- Insurance binder A temporary insurance arrangement usually put in force until a permanent policy can be obtained.
- Interest The fee borrowers pay to obtain a loan. It is calculated based on a percentage of the total loan.
- Interest accrual rate The rate at which interest accrues on a mortgage.
- Interest-only loan The pays only the interest that accrues on the loan balance each month. Because each payment goes toward interest, the outstanding balance of the loan does not decline with each payment.
- Interest rate The sum, expressed as a percentage, charged for a loan. Interest payments on most home loans are tax- deductible.
- Interest rate buy-down plans For cash-short buyers, some sellers are willing to advance funds from the sale of the home to buy down the interest rate and reduce the buyer's monthly obligation.
- Interest rate caps A limit on the amount that can be charged to the monthly payment of an adjustable-rate mortgage during an adjustment period.
- Interest rate ceiling The highest interest a lender can charge for an adjustable-rate mortgage.
- Investment property Real estate that generates income, such as an apartment building or a rental house.
- Jalousie window A window that consists of vertical rows of horizontal glass slats that operate together by a crank mechanism that connects all the slats.
- Joint liability The responsibility of two or more people to fulfill the terms of a home loan or debt.
- Joint tenancy Ownership by two or more people that gives equal shares of a piece of property. Rights pass to the surviving owner or owners.
- Joist A floor or ceiling support member supported by foundation walls, piers or beams. Subflooring is connected to floor joists.
- Judgment The decision of a court or law. If a court decides that a person must repay a debt, a lien may be placed against that person's property.
- Judicial foreclosure A procedure to handle foreclosure proceedings as civil matters.
- Jumbo mortgage Loans that exceed limits set by Fannie Mae and Freddie Mac. The current limit is $214,600.
- Junior mortgage A loan that subordinate to the primary loan.
- Kit home A structure that contains prefabricated components and is put together by a contractor.
- Knee wall A wall-like structure that supports roof rafters.
- Knob-and-tube wiring An old-fashioned wiring system that has been replaced by fuses and circuit breakers.
- Leverage The use of a small amount of cash--a 5 percent or 10 percent down payment--to buy a piece of property.
- Liabilities A borrower's debts and financial obligations.
- Liability insurance A policy that protects owners against any claims of negligence, personal injury or property damage.
- Lien A claim laid by one person or company on the property of another as security for money owed.
- Life cap A limit on the amount that a loan rate can move during the term of the mortgage. For example, the rate on an adjustable-rate mortgage that begins at 5 percent and has a lifetime cap of 6 percentage points cannot rise above 11 percent, even if rates on fixed-rate mortgages soar to 20 percent.
- Life-cycle cost analysis An analysis of a building project's expected operating, maintenance and replacement costs, calculated by an architect.
- Limited partnership Real estate syndicates and other investment groups use this type of ownership.. A general partner makes the group's investment decisions, oversees the investment and is principally liable for any losses.
- Lintel A horizontal piece over a door or window that carries the weight of the structure above it.
- Liquid assets Cash and all other assets that can be converted to cash relatively quickly. Liquid assets can include money in savings and checking accounts, money-market accounts, and most certificates of deposit.
- Liquidated damages When a real estate deal goes awry, one party often is entitled to liquidated damages, a sum of money set out in the purchase contract in that event.
- Listing A piece of property placed on the market by a listing agent.
- Listing inventories The known number of houses for sale within a given market.
- Live-in partnership An arrangement in which two unrelated people purchase a home.
- Live-work space An officially designated dwelling in which the occupant conducts a home-based business or enterprise.
- Load-bearing wall A wall that supports not only its own weight, but the weight of other parts of a home. Also called a bearing wall.
- Loan application The first step toward submitting a home loan requires the borrower to itemize basic financial information.
- Loan application fee A fee charged by lenders to for making a loan application.
- Loan commitment A promise by a lender or other financial institution to make or insure a loan for a specified amount and on specific terms.
- Loan officer An official representative of a lending institution who is empowered to act on behalf of the lender within certain limits.
- Loan origination fee Most lenders charge borrowers an origination fee--or points--for processing a loan. A point is 1 percent of the total loan amount.
- Loan processing fee A fee charged by some lenders for gathering information to enable the lender to process the loan.
- Loan term The amount of a time set by the lender for a buyer to pay a mortgage. Most conventional loans have 30-year or 15-year terms.
- Loan -to-value ratio A technical measure used by lenders to assess the relationship of the loan amount to the value of the property
- Lock-in When interest rates are volatile, many borrowers want to "lock in" an interest rate and many lenders will oblige, setting a limit on the amount of time the lock-in is in effect.
- Loft A living space not partitioned into rooms or a small space built above a larger room.
- Log cabin Homes constructed of rough-hewn timbers and a standard housing form in the early European settlement of the U.S.
- Low-ball offer An offer made to a seller that is substantially below market value. The longer a property stays on the market, the more likely there are to be such offers.
- Low density A low concentration of housing units in a specific area.
- Low-documentation loan A mortgage that requires only minimal verification of income and assets.
- Low-down-payment loan A home loan that requires the borrower to make only a small down payment before obtaining the financing needed to purchase a house.
- Landscape A home's surroundings can range from a shrub-studded emerald lawn to a native-plant xeriscape. It is a major component of curb appeal.
- Landscape architect A professional who holds a degree in landscape architecture, which involves training in horticulture, landscape design and planning.
- Landscape designer A landscape designer has training in horticulture and landscape planning, but does not necessarily hold a degree.
- Landscape contractor A professional who carries out the plans of a landscape architect or a landscape designer.
- Late charge A fee a lender imposes on a borrower when the borrower does not make a payment on time.
- Late payment A payment a lender receives after the due date has passed.
- Latent defect An invisible problem in a piece of property such as bad wiring, termite damage or lead paint.
- Lead A metallic chemical element present in older dwellings, primarily in the form of lead-based paint and lead plumbing. Exposure to lead has been found to be a health risk.
- Lease A binding agreement that contains the terms and conditions of a renter's occupancy.
- Leasehold estate An arrangement in which the borrower does not own a specific piece of property but possesses a long-term lease.
- Lease option A lease that contains the right to purchase the property for a specific price within a certain time frame.
- Lender A bank, savings institution or mortgage company that offers home loans.
- Legal blemish Blemishes on a piece of property, such as a zoning violation or fraudulent title claim.
- Legal description A specific way of identifying and locating a piece of real estate that is acceptable to a court.
- Letter of intent A formal statement that the buyer intends to purchase the property for a certain price on a certain date.
- Main water shut-off valve The primary valve that halts the flow of water from the water meter into a home.
- Mansard roof A roof with four sides that slope upward from the roof edge to the square peak.
- Manufactured housing Prefabricated homes that can range from simple trailers to larger dwellings.
- Mantel The facing of stone, marble or other material around a fireplace.
- Maintenance fee The monthly assessment members of a homeowners' association pay for the repair and maintenance of common areas.
- Managed-competition lots Lots in which buyers choose between one of several builders.
- Margin The lender's "retail markup" on the mortgage. For example, if the index rate for an adjustable-rate mortgage is 5 percent but the lender has a 2.5 percentage-point margin, the rate the borrower will pay is 7.5 percent.
- Market conditions Factors affecting the sale and purchase of homes at a particular point in time.
- Market value The price that a piece of property sells for at a particular point in time.
- Masonry The brick or stone work on a building.
- Master-planned community A suburban plan that includes homes and commercial, work, educational and community facilities.
- Maximum financing A loan amount within 5 percent of the highest loan-to-value ratio allowed for a property.
- Mechanical systems A home's plumbing, wiring, heating and cooling systems.
- Mechanic's lien Subcontractors or suppliers sometimes will file an encumbrance, or mechanic's lien, against a property to seek payment.
- Mediation A dispute-resolution process in which a neutral party works to resolve contract differences.
- Median price The price of the house that falls in the middle of the total number of homes for sale in that area.
- Merged credit report A report that draws information from the Big Three credit-reporting companies: Equifax, Experian and TransUnion Corp.
- Metes and bounds A time-honored land surveying method of describing land in terms of shape and boundary dimensions.
- Mint condition Mint condition, or blue-ribbon condition, refers to a house that looks as close to new as possible.
- Mixed-income housing A neighborhood that contains houses of widely varying prices.
- Mixed-use development A project that combines several different functions, such as residential space above a commercial establishment or an entire development combining commercial, residential and public accommodations.
- Modification A change in any of the terms of the loan agreement.
- Molding Decorative trim elements applied to walls, ceilings, and window and door openings.
- Money market account Accounts that work like money market funds and allow individual investors to participate in certain managed investments and withdraw funds under most conditions.
- Money market funds A mutual fund that pools the resources of individuals to invest in certain managed investments.
- Mortgage A legal document specifying a certain amount of money to purchase a home at a certain interest rate, and using the property as collateral.
- Mortgagee A bank or other financial institution that lends money to the borrower. The borrower is considered the mortgagor.
- Mortgagor The person who borrows money to purchase a house. The lender is called the mortgagee.
- Mortgage acceleration clause A clause which allows a lender to demand that the entire balance of the loan be repaid in a lump sum under certain circumstances. The acceleration clause is usually triggered if the home is sold, title to the property is changed, the loan is refinanced or the borrower defaults on a scheduled payment.
- Mortgage banker A company that provides home loans using its own money. The loans are usually sold to investors such as insurance companies and Fannie Mae.
- Mortgage broker A company that matches lenders with prospective borrowers who meet the lender's criteria. The mortgage broker does not make the loan, but receives payment from the lender for services.
- Mortgage insurance Required by lenders in some loans to protect them from a possible default . All conventional loans with less than a 20 percent down payments require private mortgage insurance, or PMI.
- Mortgage-interest deduction The tax write-off that the Internal Revenue Service allows most owners to claim for the annual interest payments they make on their real estate loans.
- Mortgage life insurance A special type of insurance that will pay off a mortgage if the borrower dies before the debt is retired.
- Motivated buyer Any buyer with a strong incentive to make a purchase.
- Motivated seller Any seller with a strong incentive to make a deal.
- Move-in condition A house that is ready for a new occupant.
- Move-up buyer A buyer who has purchased a home before and is looking for a bigger or more expensive home.
- Mullion A vertical dividing bar between window lights or panels.
- Multidwelling property A property that contains individual units for several households but carries only one mortgage.
- Multifamily mortgage A mortgage on a multifamily dwelling with more than four families, typically an apartment building.
- Multiple listing service (MLS) The service combines the listings for all available homes in an area, except For-Sale-By-Owner (FSBO) properties, in one directory or database.
- Multiple offers Multiple purchase offers occur in hot markets or hot neighborhoods.
- Municipal housing inspector Inspectors employed by cities or counties to check all construction sites and verify that contractors are meeting building codes.
- Nail pops Nails in load-bearing parts of new homes that pop out slightly because of settling of the structure.
- Needs-based pricing A seller's asking price that is based on factors such as the required funds to pay off the mortgage, the cost of remodeling or the purchase of another house.
- Negative amortization The situation occurs when a borrower's monthly payment is not large enough to cover both the principal and interest of a loan. As a result, the outstanding balance of the loan actually grows larger with each payment rather than smaller. Most fixed-rate loans are not subject to negative amortization, but many adjustable-rate mortgages are susceptible.
- Negative-slope driveway A driveway that drops from street level to the garage.
- Neo-traditional planning Planning of a community that favors the return of new-home development with such traditional features as grid-street patterns, prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service areas.
- Net cash flow Investment property that generates income after expenses such as principal, interest, taxes and insurance are subtracted.
- Net worth The worth of a person or company based on the difference between total assets and liabilities.
- New Urbanism A community design philosophy that favors the return of new-home development with such traditional features as prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service areas.
- Niche A small recessed area in a wall, traditionally arched at the top.
- NIMBY (Not In My Back Yard) The response sometimes given by neighborhoods and communities to proposed changes or development.
- No cash-out refinance The amount of the new mortgage covers the remaining balance of the first loan, closing costs, any liens and cash no more than 1 percent of the principal on the new loan.
- No-competition lots A lot in which the buyer's home will be constructed by a particular builder.
- No-documentation loan A loan application that does not require verification of income but typically is granted in cases of large down payments.
- Non-assumption clause A loan provision that prohibits the transfer of a mortgage to another borrower without lender approval.
- Non-liquid asset An asset such as a house that is not easily turned into cash.
- Non-recurring closing costs Costs that are one-time only fees for such items as an appraisal, loan points, credit report, title insurance and a home inspection.
- Note The legal document that requires a borrower to repay a mortgage at a certain interest rate over a specified period of time.
- Note rate The interest rate specified in a mortgage note.
- Notice of default A lender's initial action when a mortgage payment is late and attempts to reconcile the issue out of court have failed.
Information deemed reliable but not guaranteed.
Coldwell Banker Shaw Real Estate
619 West State Street
Ithaca, New York 14850
Tel: 607 272 4777 x140
Steve Saggese · Associate Broker, ABR