Mortgage Glossary

see Rate lock.

a short-term agreement by a lender to “hold” a certain interest rate on a home loan while the buyer negotiates a sale transaction. Also, Rate commitment option.

securities or mutual funds that invest directly in real estate.

this act passed in 1974 reeled in hidden costs, fees and kickbacks that had become widespread among real estate entities. Per this act all fees and costs must be disclosed to both buyers and sellers.

see Property tax.

process by which a borrower/homeowner may negotiate a lower interest rate on a mortgage, thereby lowering monthly payments.

The current balance owed on a home loan.

The current amount of time remaining in the length of the loan.

mortgage payments laid out over the life of the loan. Some mortgage calculators let borrowers see their repayment schedule based on the amount of the home loan, the interest rate and monthly payments. See also Amortization.

a type of mortgage designed for homeowners over 62 years of age; gives them access to home’s equity in cash payments, frees up money they may use for other important costs or to make needed home repairs.