Adjustable Rate Mortgage: A mortgage loan with an interest rate that adjusts up or down over time, as compared to a fixed-rate mortgage loan.

Appraisal: A written estimate of the market value of a property.

Assessed Value: The value a town or city places on a property to determine property taxes, as compared to the market value.

Balloon Mortgage: A mortgage loan that has lower monthly payments than a conventional mortgage loan, but with a substantial amount of principal due at the end of the loan.

Broker: An agent assisting others in a real estate transaction (real estate broker) or in obtaining a loan (mortgage broker).

Buyer's Agent: A real estate broker who has been formally appointed by a buyer to act on his/her behalf in a real estate transaction.

Cap: A maximum or ceiling of interest that can be charged on an adjustable-rate mortgage loan.

Closing Costs: Expenses, not including the purchase price of a property, which are paid by the buyer and the seller at the time of closing.

Conventional Mortgage: A mortgage loan with a fixed or adjustable rate payable over a fixed period of time (e.g., 15 or 30 years).

Deed: A written instrument that conveys ownership interests in property and which is recorded in the land evidence records of a town, city or county.

Down Payment: A percentage of the purchase price of a property that is paid in advance.

Dual Agent: A real estate broker who has been formally appointed by both the buyer and seller to act on their behalf in a real estate transaction.

Equity: The value of a property over and above the outstanding balance of any mortgage loans and/or equity lines of credit and/or other liens on the property.

Escrow: Money left in trust with a real estate broker or attorney until release by agreement or instruction.

FHA Mortgage: A mortgage loan insured by the Federal Housing Administration.

Fixed-Rate Mortgage: A mortgage loan that has a fixed rate of interest that does not adjust over time, as compared to an adjustable-rate mortgage loan.

Loan Application Fee: The fee charged by a lender to the borrower for applying for a mortgage loan.

Loan Origination Fee: The fee charged by a lender to the borrower for processing a mortgage loan.

Market Value: The selling price of a property, as compared to the assessed value.

Mortgage: A lien on property given by a borrower to a lender as security for the loan to purchase the property.

Mortgage Insurance: A policy of insurance covers the lender in the event a borrower defaults on a mortgage loan. A policy of mortgage insurance may also insure the repayment of a mortgage loan in the event of the death or disability of the borrower.

Points: One point equals one percent of the amount of a mortgage loan. For example, one point for a $100,000.00 mortgage loan is $1,000.00.

Private Mortgage Insurance (PMI): PMI provides protection for a lender where a borrower's down payment is less that 20% of the purchase price of a property.

Purchase and Sale Agreement: A signed, written agreement between the buyer and seller of a property setting forth the terms and conditions of the purchase and sale.

Prepayment Penalty: A penalty for paying more than the current amount due on a mortgage loan.

Seller's Agent: A real estate broker who has been formally appointed by a seller to act on his/her behalf in a real estate transaction.

Title: Evidence of the ownership interests in a property.

Title Insurance: Policy of insurance that protects owners of property and mortgage lenders against a loss that results from covered defects in title.