Glossary

 15 year fixed mortgage
 15 year jumbo mortgage
 20 year fixed mortgage
 30 year fixed mortgage
 401(k)/403(b) loan
 403(b) plan
 529 plan
 72 hour clause
 80-10-10 loan
 A- credit
 Abandonment
 Ability to Pay
 Abstract of title
 Accelerated depreciation
 Acceleration

15 year fixed mortgageGo to Top
A mortgage that maintains the same interest rate for the entire 15 year term of the loan.

15 year jumbo mortgageGo to Top
A mortgage which exceeds the limits as set for the by Freddie Mac and Fannie Mae. The limit changes annually. These mortgages generally have higher interest rates than conventional mortgages.

20 year fixed mortgageGo to Top
A mortgage that maintains the same interest rate for the entire 20 year term of the loan.

30 year fixed mortgageGo to Top
A mortgage that maintains the same interest rate for the entire 30 year term of the loan.

401(k)/403(b) loanGo to Top
401(k) and 403(b) are both plans that allow employees to invest and save for their retirement. The employees can authorize their employers to deduct a certain amount of the money from their salary before taxes to invest in these plans. They also permit the taking of loans against funds accrued in these plans. Loans against the 401(k) are often used as down payment for these loans. The 403(b) is also known as tax sheltered annuity (TSA) plan and is provided for employees of public schools, certain tax-exempt organizations and other certain ministries whereas the 410(k) is mainly for private organizations.
See further Reverse Mortgage

403(b) planGo to Top
A plan similar to a 401(k), but this plan is designed for public employees and nonprofit organizations.

529 planGo to Top
A savings type plan that allows families to set aside funds for their children's education with tax benefits. They are set up as prepaid tuition arrangements or simpler savings accounts. Also called Qualified Tuition Plans.

72 hour clauseGo to Top
This clause is designed to protect the seller from losing valuable marketing time during the real estate negotiation period. If a buyer has a house on the market, the seller will accept that buyer's offer but reserves the right to accept a better offer should one be presented. If this is the case, the seller gives the first buyer 72 hours to commit to the purchase or allow the second offer to prevail.

80-10-10 loanGo to Top
A popular loan which allows you to finance 90 percent of the mortgage while avoiding mortgage insurance. The buyer puts down 10 percent, then takes out two mortgages, one for 80 percent and a second for 10 percent. In general, this situation keeps your monthly payments low which makes it easier to qualify for this mortgage.

A- creditGo to Top
The best credit rating that you can have. A FICO score above 720 will get you the best offer the lender can offer and the best interest rates. When applying for a mortgage loan, you will want your credit score to be as high as you can make it. Start working on this immediately.

AbandonmentGo to Top
Abandonment happens when the person with a right or interest in a property gives up their interest. Once property has been "abandoned," it is no longer the property of the estate. This can happen either by physically abandoning the property or by demonstrating the intention of giving up the right or interest.

Ability to PayGo to Top
A principle of taxation. Individuals who earn more money will pay more income tax not because they utilize more of the government services but because they have the ability to pay more.

Abstract of titleGo to Top
A summary listing of all the transactions that pertain to the title on a specific piece of land. An abstract of title covers the time from when the property was first sold to the present. This information can be used to create a title binder.

Accelerated depreciationGo to Top
A bookkeeping method primarily for tax purposes that shows how the property is losing value. Depreciation is the reduction of the properties value over passing time. If the property is losing its value quickly, the value can be accelerated so that the majority of its value is lost in the first few years but slows down over the later years in ownership.

Ability to PayGo to Top
The right of the mortgagee (lender) to demand the immediate repayment of the mortgage loan balance upon the default of the mortgagor (borrower), or by using the right vested in the Due on Sale Clause.