Home Buyers Guide from Tammy Mitchell Hines & Co. Workbook for Home Buyers | Page 42

Glossary of Terms Rent with Option: Savings and Loan Association (S&Ls): Savings Bank: A contract which gives one the right to lease property at a certain sum with the option to purchase at a future date. Depository institutions that specialize in originating, servicing, and holding mortgage loans, primarily on owner-occupied residential property. A financial institution organized to hold individual depositors’ funds in interest-bearing accounts and to make long-term investments, such as home mortgage loans. Second Mortgage/ Second Deed of Trust/ Junior Mortgage or Lien: An additional loan imposed on a property with a first mortgage; generally a higher interest rate and shorter term than a "first" mortgage. Severalty Ownership: Ownership by one person only; sole ownership. Shared-Equity Mortgage: A home loan in which an investor is granted a share of the equity, thereby allowing the investor to participate in the proceeds from resale. Survey: The process by which a parcel of land is measured and its area ascertained. Tenancy in Common: Ownership by two or more persons who hold an undivided interest without right of survivorship (in the event of the death of one owner, his/her share will pass to the heirs). Title: A document that is evidence of ownership. Title Defect: An outstanding claim or encumbrance on property that affects marketability. Title Insurance: Protection for lenders and homeowners against financial loss resulting from legal defects in the title. Veterans Administration (VA): A government agency that provides services for eligible veterans of the armed forces. It guarantees mortgage loans made by private lenders to veterans. Variance: A special suspension of zoning laws to allow the use of property in a manner not in accord with existing laws. Zoning Restrictions: Local municipal ordinances that classify property according to specific uses such as single family, residential, commercial, or industrial. www.CallTammy.com * 618-281-3959 * [email protected]