Amortization: Paying off a debt over time with regular payments.

Annual Percentage Rate (APR): The yearly rate charged for borrowing, shown as a percentage.

Appraisal: Estimating a property's value by a licensed professional.

Assumption: The act of assuming responsibility for an existing mortgage from a home seller.

Balloon Mortgage: A mortgage that typically offers low rates for an initial period, then requires one large payment for the remaining amount.

Bankruptcy: A legal procedure to deal with debt problems of individuals or businesses.

Bridge Loan: A short-term loan that covers the period between the end of one loan and the beginning of another.

Broker: An individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor.

Buydown: When a borrower pays an upfront fee in exchange for a reduced interest rate.

Cap: A limit on how much an adjustable-rate mortgage's rate can change at one time.

Closing: The final procedure in which documents are signed and payments are made, transferring the property from a seller to a buyer.

Closing Costs: Expenses above the property's price incurred by buyers and sellers.

Collateral: Property pledged to secure a loan.

Conforming Loan: A loan that does not exceed limits set by government-sponsored enterprises.

Construction Loan: Short-term financing for real estate construction.

Contingency: A condition that must be met before a contract is legally binding.

Conventional Loan: A private loan that's not insured by the government.

Deed: The legal document transferring ownership or title to a property.

Deed-in-Lieu: A deed given by a mortgagor to the mortgagee to satisfy a debt and avoid foreclosure.

Default: Failure to make mortgage payments on a timely basis or to comply with other requirements of a mortgage.

Delinquency: Failing to make a mortgage payment on time.

Down Payment: The initial upfront portion of the total amount due.

Earnest Money: A deposit made to a seller showing the buyer's commitment.

Easement: A right of way giving access to or over a property for a specific purpose.

Effective Interest Rate: The cost of a loan, including fees.

Equity: The difference between the market value of a property and the amount the owner owes on the mortgage.

Escrow: An account where a neutral third party holds documents and money for a real estate transfer until all conditions are met.

Federal Housing Administration (FHA): A U.S. government agency that offers mortgage insurance to qualified FHA-approved lenders.

Fixed-Rate Mortgage: A mortgage in which the interest rate remains constant for the entire term of the loan.

Foreclosure: The legal process by which a bank or other entity reclaims a property due to a homeowner's failure to meet mortgage payment obligations.

Home Equity Line of Credit (HELOC): A loan in which the lender agrees to lend a maximum amount within an agreed period, where the collateral is the borrower's equity in their house.

Interest: The charge for the privilege of borrowing money, usually expressed as an annual percentage rate.

Jumbo Loan: A mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA).

Loan-to-Value (LTV) Ratio: A metric used to measure the risk of lending money to a borrower. It's calculated by dividing the mortgage amount by the property’s appraised value.

Mortgage Broker: An individual or firm that acts as an intermediary between a borrower and a mortgage lender.

Origination Fee: A fee charged by the lender for processing a new mortgage loan.

Principal: The amount of money borrowed or still owed on a loan, separate from interest.

Refinance: The process of getting a new mortgage, usually with a new lender, to replace the current one.

Title: A formal document that represents ownership of a property.

Underwriting: The process by which a lender determines if the risk of lending to a particular borrower under certain parameters is acceptable.

Veterans Affairs (VA) Loan: A loan program offered by the U.S. Department of Veterans Affairs to help veterans, active-duty service members, and certain members of the National Guard and Reserves buy a home.

Yield: The annual return on an investment, expressed as a percentage of the amount invested.

Zoning: Municipal rules that dictate how property in specific geographic zones can be used.