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Local Lender Glossary

Construction Loan

A loan obtained with the intent of building a new home. At the completion of the home, the borrower must refinance the loan with a permanent mortgage

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

A
Adjustable Rate or ARM
Amortization
Annual Percentage Rate (APR)
Application
Application Fee
Appraisal
Appraised Value Financing

B
Builder Approval

C
Cash Out
Closing Costs
Conforming Loan
Construction Interest Rate
Construction Loan
Construction to Permanent Loan

D
Discount Points, or Points
Down Payment
Draw or Disbursement Schedule

E
Effective Interest Rate
End Loan Financing
Equity
Extended Rate Lock

F
FHA Loan
Fixed Rate
Float Down Option

G
Good Faith Estimate
Gross Income

H
Hazard Insurance
Home Equity Loan
HUD I Settlement Statement

I
Index
Interest Rate

J
Jumbo Loan

K

L
Loan to Value Ratio (LTV)
Lock or Lock In

M
Modification

N
Negative Amortization

O
One time or "single" close

P
PITI
Prepayment Penalty

Q
Qualifying Ratios

R
Right of Rescission

S

T
Take Out Loan
Title
Title Insurance

U
Underwriting

V
VA Loan

W

X

Y

Z