Home Loan Glossary

Confused about some of the terms associated with home sales? Here are some of the definitions you can benefit from and learn more about the home loan industry.

1. Adjustment Date - This is the date that the interest rate on an ARM (adjustable rate mortgage) will change, adjusting down or up depending on several market factors.
2. Earnest Money Deposit - This is an amount of money that is put forward by a potential home buyer to show that they are serious about their interest in buying a home.
3. FHA Loan - An FHA mortgage is insured by the Federal Housing Administration and is therefore qualified as a government loan.
4. Government Loan - Any one of several loans that are backed by government interests, including FHA, VA, or RHS loans. Loans that are not government loans are known as conventional loans.
5. Lock In/Lock In Period - When working with a lending institution to buy a home there is a lock-in-period before the home purchase where you are allowed to lock in the interest rate that will apply to your mortgage once it is finalized.
6. Owner Financing - A mortgage in which the owner provides all of the financing for the purchase for the home. This type of financing is usually only offered with wealthy homeowners who have a vested interest in avoiding a lengthy or costly escrow in order to sell their home.
7. Real Property - This term covers land, homes, mines, trees or other tangible, marketable assets that may be bought or sold.
8. VA Mortgage - A government-backed mortgage option that is offered to military and military veterans.