Home Buyers Guide from Tammy Mitchell Hines & Co. Workbook for Home Buyers | Page 40

Glossary of Terms
Deed (quit claim):

A deed that transfers only that title or right to a property that the holder of that
title has at the time of the transfer. It does not warrant or guarantee a clear title.

Department of Housing
And Urban Development:
Disclosure Laws:
Earnest Money:
Easement:
Encroachment:
Equity Mortgage:
Escrow:
Fannie Mae:
Federal Housing
Administration (FHA):
Fixed Rate Mortgage:
Foreclosure:
Freddie Mac:
Graduated-Payment
Mortgage:
Growing-Equity
Mortgage:
Installment Debts:
Investor:

A U.S. government agency established to implement certain federal housing
and community development programs.
State and federal regulations which require sellers to disclose such
conditions as whether a house is located in a flood plain or whether there are
known defects in or affecting the property.
A portion of a down payment given to the seller by a potential buyer
indicating the buyer’s intent to complete the purchase of the property.
A right to use the land of another.
A condition that limits the interest in a title to property, such as a mortgage,
deed restrictions, easements, unpaid taxes, etc.
A mortgage based on the borrower’s equity in their home rather than on their
credit worthiness.
The placement of money or documents with a third party for safekeeping
pending the fulfillment or performance of a specified act or condition.
Nickname for Federal National Mortgage Corp. (FNMA), a tax paying
corporation created by Congress to support the secondary mortgages insured by
FHA or guaranteed by VA, as well as conventional home mortgages.
An agency within the Department of Housing and Urban Development (HUD)
that administers loan guarantee programs and loan insurance programs to make
more housing available.
A loan that fixes the interest rate at a prescribed rate for the duration of the loan.
Procedure whereby property pledged as security for a debt is sold to pay the
debt in the event of default.
Nickname for Federal Home Loan Mortgage Corp. (FHLMC), a federally
controlled and operated corporation to support the secondary mortgage market.
It purchases and sells residential conventional home mortgages.
A mortgage that starts with low monthly payments and increases at a
predetermined rate.
A mortgage loan in which the monthly payments increase by a specific amount
each year, with the "overpayments" applied to the principal.
Long-term debts that usually extend for more than one month.
The holder of a mortgage or the permanent [