PARGING   
The cement coat applied to block foundations.

PARTIAL INTEREST  
A shared ownership in a piece of property. May be divided among two or more parties.

PARTIAL PAYMENT   
A payment of less than the regular monthly amount. Usually, a lender will not accept partial payments.

PERIODIC PAYMENT CAP 
The limit on how much regular monthly payments on an Adjustable Rate Mortgage can change during one adjustment period.

PERIODIC RATE CAP   
The limit on how much the interest rate on an Adjustable Rate Mortgage can change during any one adjustment period.

PERSONAL PROPERTY   
Owned items which are not permanently affixed to the land.

PERSONAL RESIDENCE   
The primary domicile of a person or family.

PLANNED UNIT DEVELOPMENT (PUD)   
A coordinated, real estate development where common areas are shared and maintained by an owner's association or other entity.

PLAT   
A plan or chart of a piece of land which lays out existing or planned streets, lots or other improvements.

POINT   
A percentage of a mortgage amount (one point = 1 percent).

PRE-APPROVAL   
The process of applying for a mortgage loan and becoming approved for a certain amount at a certain interest rate before a property has been chosen. Pre-approval allows the borrower greater freedom in negotiations with sellers.

PREFABRICATED   
Any building or portion thereof which is manufactured and assembled off site, then erected on a property.

PREPAYMENT   
Payment made that reduces the principal balance of a loan before the due date and before the loan has become fully amortized.

PREPAYMENT PENALTY   
A fee that may be charged to a borrower who pays off a loan before it is due.

PRE-QUALIFICATION   
Less formal that pre-approval, pre-qualification usually means a written statement from a loan officer indicating his or her opinion that the borrower will be able to become approved for a mortgage loan.

PRIME RATE   
The interest rate that banks and other lending institutions charge other banks or preferred customers.

PRINCIPAL   
The amount owed on a mortgage which does not include interest or other fees.

PRINCIPAL BALANCE   
The outstanding balance of principal on a mortgage. Does not included interest due.

PRINCIPAL, INTEREST, TAXES, AND INSURANCE (PITI)   
The most common constituents of a monthly mortgage payment.

PRIVATE MORTGAGE INSURANCE (PMI)   
A form of mortgage insurance provided by private, non-government entities. Normally required when the LOAN TO VALUE RATIO is less that 20%.

PROPERTY   
Any item which is owned or possessed.

PURCHASE AGREEMENT   
A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.

QUADRAPLEX   
Any building designed to accommodate four families.

QUALIFYING RATIOS   
Two ratios used in determining credit worthiness for a mortgage loan. One is the ratio of a borrower's monthly housing costs to monthly income. The other is a ratio of all monthly debt to monthly income.

QUITCLAIM DEED   
A legal document which transfers any ownership an individual has in a piece of property. Often used when the amount of ownership is not known or is unclear.

RAFTER   
A structural element of the roof, sloping from the peak to the outer walls.

RANCH HOUSE   
An architectural style typified by a single-story, low-roof construction. Popular in the western U.S.

RATE LOCK   
A guarantee from a lender of a specific interest rate for a period of time.

RAW LAND   
Any land which has not been developed.

REAL ESTATE   
A piece of land and any improvements or fixtures located on that land.

REAL ESTATE AGENT   
A licensed professional who facilitates the buying and selling of real estate.

REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA)   
A federal law requiring lenders to give full disclosure of closing costs to borrowers.

REAL PROPERTY   
Land, improvements and appurtenances, and the interest and benefits thereof.

REALTOR®   
A real estate agent or broker who is a member of the NATIONAL ASSOCIATION of REALTORS®.

RECEPTACLE   
An electrical outlet to plug into.

RECORDER   
A local government employee whose role it is to keep records of all real estate transactions within the jurisdiction.

RECORDING   
The filing of a real estate transaction with the appropriate government agent (normally the RECORDER). A real estate transaction is considered final when it is recorded.

REFINANCE TRANSACTION   
A new loan to pay off an existing loan. Typically to gain a lower interest rate or convert equity into cash.

REGISTER   
Where air from a furnace or air conditioning system enters the room.

RELOCATION SERVICE   
Any company or agency that assists corporate employees in relocating from one place to another. Services may include hiring and coordinating real estate agents, moving companies, utilizes and the like.

REMAINING BALANCE   
The amount of principal, interest and other costs that has not yet been repaid.

REMAINING TERM   
The amount of time remaining on the original amortization schedule.

REMODEL   
An activity designed to improve the value or desirability of a property through rebuilding, refurbishing, redecorating or adding on to it.

REPAYMENT PLAN   
A plan to repay delinquent payments, agreed upon between a lender and borrower, in an effort to avoid foreclosure.

REPLACEMENT RESERVE FUND   
An account, or fund, setup for the replacement of short life items, such as carpeting, in the common areas of a cooperative property.

RESIDENTIAL PROPERTY   
A piece of property whose highest and best use is the maintenance of a residence.

REVOLVING DEBT   
A type of credit that allows the borrower/customer to make charges against a predetermined line of credit. The customer then pays monthly installments on the amount borrowed, plus interest.

RIDGE BOARD   
The structural member of a roof where the rafters join at the top.

RIGHT OF FIRST REFUSAL   
An agreement giving a person the first opportunity to buy or lease a property before the owner offers it for sale to others.

ROOF PITCH   
The degree of slope in a roof.

RURAL   
An area outside of an established urban area or metropolitan district.

SALE PRICE   
The actual price a property sells for, exclusive of any special financing concessions.

SALES COMPARISON APPROACH   
An appraisal practice which estimates the value of a property by comparing it to comparable properties which have sold recently.

SCARCITY   
An economic principal that dictates the price of a good or service through the interaction of supply and demand. When an item is scarce, its price tends to rise, given a constant demand. Real Estate is a classic example of scarcity.

SECOND MORTGAGE   
A loan secured by the equity in a home, when a primary mortgage already exists.

SECONDARY MORTGAGE MARKET   
An economic marketplace where mortgage bankers buy and sell existing mortgages.

SECURED LOAN   
A loan that is backed by collateral. In the case of a mortgage loan, the collateral is the house.

SECURITY   
The property used as collateral for a loan.

SEMIDETACHED HOUSING   
Two residences which share a common wall.

SERVICER   
A financial institution which collects mortgage payments from borrowers and applies the appropriate portions to principal, interest and any escrow accounts.

SERVICING   
The processing of payments, mailing of monthly statements, management and disbursement of escrow funds etc Typically carried out by the company you make payments to.

SHEATHING   
The covering on outside walls beneath the siding or exterior finish such as stucco.

SHEETROCK   
Also called drywall, the gypsum board commonly used on interior walls.

SILL PLATE   
The lumber used around the foundation to support exterior wall framing.

SILL COCK   
Garden hose pipe connection.

SINGLE-FAMILY PROPERTY   
A property designed and built to support the habitation of one family.

SOFFIT   
The underside of a cornice at the eaves.

STUCCO   
A textured plaster exterior (and occasionally interior) wall finish.

STUD   
A vertical framing piece in a wall, generally 2x4 lumber in interior walls.

SUBDIVISION   
A residential development that is created from a piece of land which has been subdivided into individual lots.

SUBJECT PROPERTY   
A term which indicates a property which is being appraised.

SUMP   
A basin into which water drains and from which the water is pumped out.

SURVEY   
A specific map of a piece of property which includes the legal boundaries and any improvements or features of the land. Surveys also depict any rights-of-way, encroachments or easements.

SWEAT EQUITY   
The method whereby a home owner develops equity in a property, either during the purchase or throughout its life, by personally constructing improvements rather than paying to have them built.

TAX-EXEMPT PROPERTY   
Any property which is not taxed.

TENANCY   
The right to occupy a building or unit.

TENANCY IN COMMON   
A form of holding title, whereby there are two or more people on title to a property, ownership does not pass on to the others upon the death of one individual.

THIRD PARTY ORIGINATION   
When a lender uses a third party to originate and package loans for sale to the secondary market (Fannie Mae, Freddie Mac).

TITLE   
A specific document which serves as proof of ownership.

TITLE COMPANY   
An organization which researches and certifies ownership of real estate before it is bought or sold. Title companies also act at the facilitator ensures all parties are paid during the real estate transaction.

TITLE INSURANCE   
A policy which insures a property owner should a prior claim arise against the property after the purchase has been completed. This also covers a lender should a question of ownership arise.

TITLE SEARCH   
The process whereby the TITLE COMPANY researches a properties title history and ensures that no outstanding claims exist.

TRANSFER OF OWNERSHIP   
Any means by which the ownership of a property changes hands.

TRANSFER OF TAX   
Taxes payable when title passes from one owner to another.

TRAP   
A bend in water pipe.

TRUSTEE   
A fiduciary that holds or controls property for the benefit of another.

TRUTH IN LENDING   
A federal law requiring full disclosure by lenders to borrowers of all terms, conditions and costs of a mortgage.

TUDOR   
A style of architecture typified by exposed stone, wood and brick construction. Similar in style to English manor homes.