Glossary (click letters)
HUD-1 Settlement Statement
A document that lists all closing costs on a real estate purchase or refinance transaction. Also known as the "closing statement" or "settlement sheet."
Insurance coverage that compensates for physical damage to a property from fire, wind, vandalism, or other covered hazards or natural disasters.
Home Equity Conversion Mortgage (HECM)
A special type of mortgage developed and insured by the Federal Housing Administration (FHA) that enables older home owners to convert the equity they have in their homes into cash, using a variety of payment options to address their specific financial needs. Sometimes called a reverse mortgage.
Home Equity Line of Credit
A type of revolving loan, that enables a home owner to obtain multiple advances of the loan proceeds at his or her own discretion, up to an amount that represents a specified percentage of the borrower's equity in the property.
An examination of the construction, condition and internal systems of a home prior to purchase; satisfactory home inspection may be a condition of purchase.
A broad form of insurance coverage that combines hazard insurance with personal liability protection and other coverage.
Homeowner's Warranty (HOW)
Insurance offered by a seller that covers certain home repairs and fixtures for a specified period of time.
An organization of homeowners residing within a particular area whose principal purpose is to ensure the provision and maintenance of community facilities and services for the common benefit of the residents.
Housing Expense Ratio
The percentage of a borrower's gross monthly income that is devoted to housing costs.