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Pre-payment Penalty
An agreed amount you pay if your loan is paid of early.
Pre-qualification
A status where the lender provides an estimated amount you may
be qualified for, based on initial access to your information, such as
income and expenses.
Private Mortgage Insurance (PMI)
Insurance you pay to protect the lender from your mortgage default.
Once you have 20% equity or 80% debt-to-value, the insurance
usually ends.
Principal
Amount owed to lender excluding interest.
Rate Lock
Allows you to lock in an agreed interest rate for a specified period.
Real Estate Agent
A trained professional who is licensed to help the public buy and
sell houses and properties.
Seller’s Agent
Realtor who represents the seller in a transaction.
Title
A document that shows the legal ownership of a house.
Title Insurance
Insurance that protects the owner and lender from title defects.
These may include liens, back taxes, lawsuits, and third-party
ownerships.
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