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A mortgage that includes personal property as part of the security.

The payments do not repay the loan over its term and thus a lump sum mortgage loan (balloon) is required to repay the loan.

An association of two or more persons to carry on a business for profit as co-owners.

A provision of some ARMs limiting the amount by which a borrower's payments may increase regardless of any interest rate increase; may result in negative amortization. See Adjustable-rate mortgage.

A lease in which the rent amount is based on a percentage of gross sales (monthly or annually) made by the tenant.

For an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase or decrease during any one adjustment period.

With most major home improvement projects, work permits may be required. Permits provide legal permission to undertake a project and are usually given by local governments agencies.Some of the most common permits are for general projects or permits that require you to meet specific local building codes.You may want to check with your local government to determine if there are building restrictions in historic areas or in environmentally-sensitive areas.

Termite InspectionHomes in many parts of the country must be inspected for termites before they can be sold. You should receive a certificate from a termite inspection firm stating that the property is free of both visible termite infestation and termite damage.The cost of the termite inspection is usually paid by the seller, and the seller's real estate sales professional orders the inspection. You need to make sure that the original certificate is delivered to your lender at least three days before closing.This allows the lender to review the certificate and address any potential problems.

Principle, interests, taxes and insurance (PITI) are the four components of a monthly mortgage payment. The four components of a monthly mortgage payment:

A Land Development project involving a mixture of land uses and densities not available for separately zoned units. Similar to condominiums, it is viewed as an integrated whole. Unlike condominiums, however, t he individual unit owners do own a portion of the land under and around their individual unit.

A drawing showing the placement of a building on a site with precise locations, dimensions, and elevations.

A charge of 1 percent of the loan amount made at origination of mortgage.

A one-time charge the lender adds to a mortgage loan. A point is 1\% of the mortgage loan amount.

Borrowed funds are invested at a rate of return higher than the cost of the funds to the borrower.

A legal document that authorizes another person to act on one's behalf. A power of attorney can grant complete authority or can be limited to certain acts and/or certain periods of time.

The process of determining how much money a prospective home buyer will be eligible to borrow before he or she applies for a loan.

Predatory lending refers to abusive mortgage practices, which threaten the financial security of homeowners and the stability of neighborhoods. Predatory mortgage lenders market their products to homeowners with home equity, people with large debts or those in need of home repairs. These lenders use high-pressure sales tactics, inflated fees or interest rates, and unaffordable repayment terms. Many homeowners become financially burdened by these loans and fall at risk of losing their homes.

A procedure in which the investor allows a mortgagor to avoid foreclosure by selling the property for less than the amount that is owed to the investor.

Any amount paid to reduce the principal balance of a loan before the due date. Payment in full on a mortgage that may result from a sale of the property, the owner's decision to pay off the loan in full, or a foreclosure. In each case, prepayment means payment occurs before the loan has been fully amortized.

The right of a borrower to pay a mortgage ahead of the scheduled due date.

The sum of all future benefits accruing to the owner of an asset when such benefits are discounted to the present by an appropriate discount rate.

The interest rate that banks charge to their preferred customers. Changes in the prime rate influence changes in other rates, including mortgage interest rates.

The outstanding balance of principal on a mortgage. The principal balance does not include interest or any other charges. (see also "Remaining Balance")

A sale held to sell property, including houses, of a person who has died.

The examination of a house by a licensed inspector to see if its structure is sound and if its mechanical systems, such as plumbing and heating, are working.

Allocation of costs and income between the buyer and seller of real estate at the time of the transaction closing, based upon the time of ownership of each.

Organization created by local government which administers HUD's Low-Income Public Housing Program and other HUD programs.

A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold. The Purchase and Sale Agreement is a written contract that is signed by the buyer and seller. It states the terms and conditions under which a property will be sold. It includes:

The acquisition of property through the payment of money or its equivalent.