| Question |
Answer |
| Lease | a legal document that defines the conditions of a rental agreement |
| condominium | an individually owned housing unit in a building with several such units
|
| cooperative housing | a form of housing in which a building containing a number of housing units is owned by a non-profit organization whose members rent the units |
| manufactured homes | a housing unit that is fully or partly assembled in a factory before being moved to the living site |
| zoning laws | restrictions on how the property in an area can be used |
| earnest money | a portion of the price of a home that the buyer deposits as evidence of good faith to indicate a serious purchase offer |
| points | prepaid interest charged by a lending institution for the mortgage |
| conventional mortgage | a fixed-rate, fixed-payment home loan with equal payments over 15, 20, or 30 years. |
| amortization | a reduction of a loan balance through payments made over a period of time. |
| balloon mortgage | a home loan with fixed monthly payments and a large final payment. |
| (ARM) adjustable-rate mortgage | a home loan with an interest rate that can change during the mortgage term due to changes in market interest rates. |
| rate cap | a limit on the increases and decreases in the interest rate charged on an adjustable-rate mortgage. |
| payment cap | a limit on the payment increases for an adjustable-rate mortgage. |
| growing-equity mortgage | a home loan agreement that provides for payment increases to allow the amount owed to be paid off more quickly. |
| buy-down | an interest rate subsidy from a home builder, a real estate developer pr by the buyer that reduces a home buyer's mortgage payments during the first few years of the loan. |
| second mortgage | a cash advance based on the paid-up value of a home |
| reverse mortgage | a loan based on the equity in a home, that provides elderly homeowners with tax-free income and is paid back with interest when the home is sold or the homeowner dies |
| refinancing | the process of obtaining a new mortgage on a home to get a lower interest rate. |
| closing costs | fees and charges paid when a real estate transaction is completed |
| title insurance | insurance that, during the mortgage term, protects the owner or the lender against financial loss resulting from future defects in the title and from unforeseen property claims not excluded by the policy. |
| deed | a document that transfers ownership of property from one party to another. |
| escrow account | money, usually deposited with the lending institution, for the payment of property taxes and homeowner's insurance. |
| appraisal | an estimate of the current value of a property. |
| insurance | protection against financial loss |
| insurance company | a risk-sharing firm that assumes financial responsibility for losses that may result from an insured risk |
| policy | a written contract for insurance |
| premium | the amount of money a policyholder is charged for an insurance policy. |
| risk | chance or uncirtainty of loss |
| peril | the cause of a possible loss |
| hazard | a factor that increases the likelihood of loss through some peril. |
| pure risk | a risk in which there is only a chance of loss |
| speculative risk | a risk in which there is a chance of either loss or gain |
| self-insurance | the process of establishing a monetary fund to cover the cost of a loss. |
| liability | legal responsibilities for the financial cost of another person's losses or injuries |
| negligence | failure to take ordinary or reasonable care in a situation. |
| strict liability | a situation in which a person is held responsible for intentional or unintentional actions |
| vicarious liability | a situation in which a person is held legally responsible for the actions of another person |
| homeowners insurance | coverage for a place of residence and its associated financial risks |
| personal property floater | additional property insurance to cover the damage or loss of a specific item of high value. |
| household inventory | a list or other documentation of personal belongings, with purchase dates and cost information. |
| medical payments coverage | home insurance that pays the cost of minor accidntal injuries on one's property. |
| endorsement | an addition of coverage to a standard insurance policy. |
| coinsurance clause | a policy provision that requires a homeowner to pay for part of the losses if the property is not insured for the specified percentage of the replacement value. |
HHS Shrek
