glossary

Glossary

Adjustable Rate Mortgage (ARM)
A home loan with an interest rate that moves up or down depending on changes in the Prime Rate and the general financial market.
Annual Percentage Rage (APR)
The yearly cost of a loan above the principal amount. This amount includes interest, service charges, points, loan fees, mortgage insurance and other items.
Appraisal
The process of determining the dollar value on real property. An appraisal is an estimate based on economic factors, time or date of the estimate, and other analysis.
Apron
A landscaping term referring to a paved area and the intersection of a driveway or garage entrance.
Baseboard
The board that runs along floors and against walls giving a finished appearance to the junction of the walls and the flooring.
Beam
A horizontal structural support made of wood or steel.
Bearing Wall
Also called a Load Bearing Wall, it is a wall that helps to support the load of the house's structure.
Builder-included Feature
Builder-included features may include a specific style of cabinets, or a specific type of countertop. Carbine and Associates clients can personalize their home by choosing from a range of colors for their standard features at no additional cost.
Closing
A real estate transaction that concludes the details of a mortgage with all the parties involved. It involves the signing and transfers of all documents an distribution of funds.
Closing Costs
Costs paid at settlement for obtaining a mortgage loan and transferring real estate.
Commitment
A written promise of a lender to a borrower to make a mortgage loan, on a specific property under stated terms and conditions.
Condominium
A unit in a multi-unit project that allows real estate ownership of each unit by separate owners.
Conventional Loan
A mortgage not guaranteed by a government agency.
Convertible Loan
A loan which can be changed from an adjustable rate to a fixed rate.
Crawl Foundation
A house foundation built with masonry block or poured concrete.
Cul-de-sac
The turn around at the end of a dead-end street.
Deductible
The portion of a claim in for an insurance policy which owner must pay.
Deed
An official document which transfers land ownership from one party to another.
Density
The number of homes built on an acre of land.
Downpayment
The cash payment a buyer makes which is the difference between the mortgage amount and the sale price of a home.
Easement
A privilege or right that one party may have concerning the use of another party's lands; for example, a right of way to install, operate and maintain utility lines.
Eaves
The extension or overhang of a roof beyond the house walls.
Encumbrance
A legal interest in a property that affects or limits the sale or transfer of the property. Ex. mortgages, leases, easements, judgments and liens.
Equity
The difference between the value of a home and the outstanding loan balance on it.
Escrow Payments
A portion of monthly payments of a mortgage held by the lender in an account to pay for taxes, insurance, and other monthly payments as the come due.
Fixed Rate Mortgage
A mortgage rate with an interest rate that does not change over the life of the loan.
Elevation
The exterior facade of a home, including the materials (like brick or stone) used on that face.
Floor Plan
An architectural drawing showing the overall layout of a home. The size and shape of each room, as well as any optional configurations of those rooms, are shown on the floor plan.
Flue
The opening in a chimney that vents smoke, gases to the outside.
Foundation
Lower parts of walls made from masonry or concrete on which structures are built.
Framing
The rough lumber of the home consisting of joists, studs, rafters, trusses, and beams.
Gable
The triangular part of an exterior wall under the inverted "V" of the roof line.
Graduated Payment Mortgage
A loan with a fixed rate and schedule that starts with lower payments and then rises each year over the next 5 to 10 years and remains fixed after that.
HOA (Homeowners Association)
In many new communities, an association of homeowners is formed. The Homeowners Association is responsible for enforcing the rules and regulations of the community, and also for the maintenance and upkeep of any common areas, including community centers, swimming pools, health club facilities and landscaping.
Homesite
Each new community is divided into individual lots, or homesites. In most communities, a homebuyer gets to choose their homesite and the floor plan that suits them best, with some restrictions to ensure a varied neighborhood.
Homesite Premium
A premium paid by the buyer for a special, unique homesite that may be either larger or in a more desirable location.
House Style
A generic name that defines a house as a ranch, two story, split level, etc.
House Type
A specific model of a house style.
Interest
The cost of borrowing money which is usually a percentage of the amount of the loan assessed annually.
Joist
A small rectangular sectional structural support arranged parallel from wall to wall in a building.
Lien
A legal claim on property as a security for a debt.
Lot
The smallest division of land for sale or development. Minimum lot size may very between localities.
Master Plan Community
A large community, often with homes built by several different builders, in a wide variety of prices. Master plan communities usually include community centers, pools and other recreational facilities. Often there are commercial districts, offering shopping and entertainment within the master plan.
Mortgage
An agreement between and owner and a lender to transfer the title of a property as a security of the debt payment. The owner retains possession and use of the land while the payments are being made.
Non-Bearing Wall
Also called a non-load bearing wall, it is a wall structure that does not support any additional weight other than the drywall covering it.
Option
Homebuyers are able to personalize their home to fit their unique lifestyle by purchasing additional options such as appliances, designer finishes on cabinets, countertops and floors, fireplaces and a variety of other choices.
P & I
Principal and Interest portion of a monthly mortgage payment.
Phase
A group of homesites within a community. Most homebuilders sell all the lots within the current phase before moving on to the next phase of the community. Builders "release" a new phase when the current phase is almost sold out to make a completely new selection of lots available for purchase.
Point(s)
A one time fee that may be charged by the mortgage lender at closing time. It is usually expressed as a percentage of the total loan amount. One point is equal to 1% of the loan amount.
Property Line
Legal boundary of a parcel of land.
Rafter
One of a series of structural roof supports spanning from an exterior wall to a center ridge beam or ridge board.
Refinancing
The repayment of a mortgage from the proceeds of a new mortgage loan using the same property as security. The process is often done to reduce monthly payments, shorten the term, or get equity out of the property.
Reservation
A non-binding agreement to purchase a home at a future date. Often, a reservation is taken for a specific lot in an upcoming phase, giving the buyer the first opportunity to purchase that lot when the phase is released. A reservation usually requires a deposit.
Right of Way
Usually an easement granted or acquired for roads and utilities in excess of actually roadway or transit way.
R-Value
The resistance of insulation materials, such as windows or walls, to heat passing through them. The higher the number, the higher the insulating value.
Set Backs
A set of minimum distances from the property lines to the structure on the side and front.
Slope
The amount of incline or decline of land surface generally given in fractional ration terms; (i.e. 2:1, 6:1). The first number is elevation in feet and inches; the second number is the horizontal distance.
Subdivision
The division of a parcel of land into lots for the purpose of sale or development.
Title
The certificate or deed that is legal evidence of a party's ownership of a property.
Transfer Taxes
Taxes levied by a state or local government on the transfer of property or real estate loans from party to party.
Truth In Lending Act
A federal law aimed at promoting the informed use of consumer credit by requesting the lender to provide the borrower with disclosures about terms and costs.
Walk-Through
A demonstration of the home just before settlement to orient the buyer to the new home.
Warranty
An agreement to fix or repair specific items of your home according to the certain terms.
Zero Lot Line
The practice of placing the building on one of the side lot lines in order to increase the usable side yard space.
Zoning
The legislative division of a community on segments reserved for specific uses and also the minimum required size for such use.