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Real Estate Terms That You Should Know...H-L

Real Estate Q&AHere’s a list of more real estate terms you should know to help your transactions go smoothly. We’re going through the alphabet, so check out these terms from H-L.

Home Inspection 
Professional inspection of a home to evaluate the home's overall quality, safety, and soundness. Home inspection fees are typically paid by the home buyer.

Homeowners' Association
An organization made up of neighbors concerned with managing the common

areas of a subdivision or condominium complex. These associations collect to maintain the properties and common areas. The homeowners' association is also responsible for enforcing any covenants, conditions, and restrictions that apply to the property.

Homeowner's or Hazard Insurance 
Insurance that protects the homeowner's property against damage, such as that from fire, storms, and other hazards. Most lenders require hazard insurance. Hazard insurance typically is paid through an escrow account as part of the monthly mortgage payment.

Homestead Credit 

Property tax credit program, offered by some state governments, that provides reductions in property taxes to eligible households.

House Closing
The final transfer of the ownership of a house from the seller to the buyer, which occurs after both have met all the terms of their contract and the deed has been recorded.

Inflation Coverage
Endorsement to a homeowner's policy that automatically adjusts the amount of insurance to compensate for inflationary rises in the home's value. This type of coverage does not adjust for increases in the home's value due to improvements.

The percentage of the loan money that is charged to the borrower. It represents the cost of borrowing the money.

Late Payment Charges 
The penalty the homeowner must pay when a mortgage payment is made after the due date grace period.

A claim of money against a property, wherein the value of the property is used as security in repayment of a debt.

Listing Agreement 
A contract between a seller and a real estate professional to market and sell a home. A listing agreement obligates the real estate professional (or his or her agent) to seek qualified buyers, report all purchase offers and help negotiate the highest possible price and most favorable terms for the property seller.

Loan Acceleration 

An acceleration clause in a loan document is a statement in a mortgage that gives the lender the right to demand payment of the entire outstanding balance if a monthly payment is missed.

Loan Origination Fee 
A charge by the lender to cover the administrative costs of making the mortgage. This charge is paid at the closing and varies with the lender and type of loan. A loan origination fee of 1 to 2 percent of the mortgage amount is common.

Loan Servicer - The company that collects monthly mortgage payments and disperses property taxes and insurance payments. Loan servicers also monitor nonperforming loans, contact delinquent borrowers, and notify insurers and investors of potential problems. Loan servicers may be the lender or a specialized company that just handles loan servicing under contract with the lender or the investor who owns the loan.

Loan - To - Value Ratio (LTV)
The percent of the appraised value of a property (or the sales price of that property, if it is lower) that may be loaned.

Lock - In 
A written guarantee that the buyer will receive a specified interest rate, provided that the loan "closes" within a set period of time

For more information on real estate from Palm Beach to Jupiter Island, contact a Tauber Real Estate Services specialist today at 561-623-5480.


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