A mortgage with an interest rate fixed for only a short period. At the end of the period the rate will be adjusted based on current interest rate indexes.

A loan which is paid off in equal installments during its term.

A mortgage that can be transferred to a new owner. The new owner then assumes responsibility as the guarantor for the unpaid balance of the mortgage.

The final payment of a mortgage loan when it is larger than the regular payment. It usually extinguishes the debt.

The tax on profit derived from the sale of a capital asset. The capital gain is the difference between the sale price and the basis of the property, after making appropriate adjustments for closing costs, fixing up expenses, capital improvements, allowable depreciation etc.

Expenses incurred in the dosing of a real estate or mortgage transaction. Purchasers expenses normally include: cost of title examination, premiums for the title policies, credit report, appraisal fees, attorney fee, lenders service fees and recording charges.

A loan neither FHA insured nor guaranteed by the VA. A loan approved under Fannie Mae or Freddiemac guidelines.

The difference between the market value of property and the owner’s indebtedness.

That portion of a mortgagor’s monthly payment held in trust by the lender to pay for taxes, hazard insurance, mortgage insurance, iterns as they become due.

The Federal Housing Administration. Sets guidelines for special lower interest loans on lower priced homes.