See: Prefabricated House.

Insulating materials used to prevent the build up of moisture (condensation) in walls and other parts of a building.

Long, narrow strips of wood or synthetic material, used as a finish piece to cover the crack between the meeting of a wall with a floor or ceiling. Also used for decoration only.

A general term referring to the availability of money for short or long term loans.

Funds which invest in the “Money Market”, a variety of interest bearing securities such as treasury bills and bank certificates of deposit. None is invested directly into real property or real property securities.

A concrete slab foundation where the slab and supporting beams are poured together. See: Floating Slab.

A tenancy where no written lease is involved, rent being paid monthly. Some obligations as to notice of moving or eviction may exist by statute.

A mortgage under which the borrower receives monthly payments which are repaid in a lump sum, either at a specified time, when the borrower sells the property, or when the borrower dies. See also: Reverse Mortgage.

A monthly payment of principal and interest not subject to change.

A visible, permanent object, marked by a surveyor, to indicate the boundaries of land. May be artificial, such as a post, or natural, such as a tree or large stone.

A period of suspension of legal rights or remedies. In real estate terms, most commonly used by governmental agencies (usually local) to suspend construction in certain areas until studies are completed to determine the best use for the land involved.

A material used in masonry work as the “glue” holding stones or bricks together. It is composed of lime, cement, sand, and water, and hardens when it dries.

(1) To hypothecate as security, real property for the payment of a debt. The borrower (mortgagor) retains possession and use of the property. (2) The instrument by which real estate is hypothecated as security for the repayment of a loan.

A company providing mortgage financing with its own funds rather than simply bringing together lender and borrower, as does a mortgage broker. Although the mortgage banker uses its own funds, these funds are generally borrowed and the financing is either short term or, if long term, the mortgages are sold to investors (many times insurance companies) within a short time.

Bonds issued by corporations, which offer first mortgages on real property of the corporation as security for the payment of the bonds.

One who, for a fee, brings together a borrower and lender, and handles the necessary applications for the borrower to obtain a loan against real property by giving a mortgage or deed of trust as security. Also called a loan broker.

See: Loss Payable Clause.

A company authorized to arrange real estate loans, charging a fee for this service.

A federal program authorized by the Tax Reform Act of 1984. The program allows a tax credit to a home buyer of a portion of the amount that would be paid in income tax. This enables a lender to raise the borrower’s income when attempting to qualify the buyer for a home purchase.

The amount of money the borrower or seller must pay the lender to get a mortgage at a stated interest rate. One discount point equals one percent of the loan. For example, each discount point on a $125,000 loan would cost $1250. Discount points allow the borrower to get a better interest rate, and allow the lender to sell the loan at less than face value and still make a profit.

Insurance written by an independent mortgage insurance company (referred to as an +MIC’) protecting the mortgage lender against loss incurred by a mortgage default, thus enabling the lender to lend a higher percentage of the sales price. The Federal Government writes this form of insurance through the FHA and the VA.