Mortgage Glossary
- Habendum Clause
- The "to have and to hold" clause that defines the amount of the estate granted in the deed.
- Half Bath
- A half bathroom in a home that contains a wash sink and a toilet, but no bathtub or shower stall.
- Hangout
- The principal balance of a loan remaining when the term of the loan is beyond the term of a lease.
- Hazard Insurance
- Insurance protecting against loss to real estate caused by fire, some natural causes, vandalism, etc., depending upon the terms of the policy.
- Home Equity Conversion Mortgage (HECM)
- A special type of mortgage that enables seniors to convert the equity in their homes
- Home Equity Line of Credit
- a credit line that is secured by a second deed of trust on a house. Equity lines of credit are revolving accounts that work like a credit card, which can be paid down or charged up for the term of the loan. The minimum payment due each month is interest only.
- Home Equity Loan
- a loan secured by a second deed of trust on a house, typically used as a home improvement loan.
- Home Inspection
- A complete and detailed inspection that examines and evaluates the mechanical and structural condition of a property. A complete and satisfactory home inspection is often required by the homebuyer. Compare with appraisal.
- A type of insurance policy that covers repairs to certain parts of a home for an agreed upon period of time. It is typically provided by the contractor or seller as a condition of the sale
- Homeowners Association
- A nonprofit association that manages the common areas of a condominium project or planned unit development (PUD). In a condominium development, the association has no ownership interest in the common elements. In a PUD, it holds title to the common elements of the project.
- Homeowners Association Dues
- Payments made to an association responsible for the maintenance of the common areas in a condominium or subdivision development.
- Homeowner's Insurance
- Insurance that protects a homeowner against the cost of damages to property caused by fire, windstorms, and other common hazards. Also referred to as hazard insurance.
- Housing Ratio
- The ratio of the monthly housing payment in total (PITI - Principal, Interest, Taxes, and Insurance) divided by the gross monthly income. This ratio is sometimes referred to as the top ratio or front end ratio.
- Housing Starts
- Economic indicator that measures the number of residential units on which construction is begun each month. Monthly percent changes reflect the rate of change of such activity. The level of housing starts is widely followed as an indicator of residential construction activity. Frequency: monthly. Source: Commerce Department.
- HUD
- The U.S. Department of Housing and Urban Development.
- HUD Median Income
- Median family income for a particular county or metropolitan statistical area, as estimated by the Department of Housing and Urban Development (HUD).
- HUD-1 Statement
- Also referred to as the closing statement or the settlement statement, this is the document that provides line by line detail of the financial details related to a specific real estate transaction such as the fees paid by the seller and the buyer for a purchase transaction or the fees paid by the borrower for refinances.
