Housing Vocabulary

Escrow...

• A neutral 3rd party holds money before a sale is finalized.

• Set Aside money before a large transaction.

• Money you put towards down payment.

Down payment....

• Money set each month towards taxes.

• Amount of a loan paid "up front."

• What your monthly payments will equal to when purchasing a home.

Mortgage....

• The amount of money your home is worth.

• A loan to buy property.

• Total monthly payment for owning your home.

Principal....

• The amount of money you gather to pay upfront for your home.

• The amount of money paid at the time of closing.

• The amount of money borrowed for the original sale.

Foreclosure

• When you purchase the home and it now belongs to you.

• When the bank decides to loan you the money towards your home purchase.

• When an owner loses right to property by not paying their loan.

Closing costs

• Extra fees added when buying a house. Examples include title transfer fees, lawyer's fees, and survey fees.

• The final payment on your home loan.

• When the bank has closed out your home loan and the property is now owned by only you.

Default....

• Your credit was to low to move forward with purchasing a home.

• Failure to pay debt in a given time period.

• Failure to complete your loan application in home ownership process.