chapter 8 and 9
escrow account
Money, usually deposited with the lending financial institution, for the payment of property taxes and homeowner's insurance.
legal aid society
One of a network of publicly supported community law offices that provides legal assistance to consumers who cannot afford their own attorney.
Points
Prepaid interest charged by a lending institution for the mortgage; each discount point is equal to 1 percent of the loan amount.
Title Insurance
Insurance that, during the mortgage term, protects the owner and lender against financial loss resulting from future defects in the title and from other unforeseen property claims not excluded by the policy.
zoning laws
Restrictions on how the property in an area can be used.
Mediation
The attempt by an impartial third party to resolve a difference between two parties through discussion and negotiation.
Refinancing
The process of obtaining a new mortgage on a home to get a lower interest rate and payment.
Amortization
The reduction of a loan balance through payments made over a period of time.
Arbitration
The settlement of a difference by a third party whose decision is legally binding
unit pricing
The use of a standard unit of measurement to compare the prices of packages of different sizes.
impulse buying
Unplanned buying
open dating
information about freshness or shelf life found on the package of a perishable product.
Second Mortgage
A cash advance based on the paid-up value of a home; also called a home equity loan.
small claims court
A court that settles legal differences involving amounts below a set limit and employs a process in which the litigants usually do not use a lawyer.
deed
A document that transfers ownership of property from one party to another.
rate cap
A limit on the increases and decreases in the interest rate charged on an adjustable-rate mortgage.
payment cap
A limit on the payment increases for an adjustable-rate mortgage.
mortgage
A long-term loan on a specific piece of property such as a home or other real estate.
cooperative
A nonprofit organization whose member-owners may save money on certain products or services.
rebate
A partial refund of the price of a product.
service contract
An agreement between a business and a consumer to cover the repair costs of a product.
appraisal
An estimate of the current value of a property.
condominium
An individually owned housing unit in a building with several such units
Buy Down
An interest rate subsidy from a home builder or a real estate developer that reduces a home buyer's mortgage payments during the first few years of the loan.
closing costs
Fees and charges paid when a real estate transaction is completed; also called settlement costs.
Conventional Mortgage
A fixed-rate, fixed-payment home loan with equal payments over 10, 15, 20, 25, or 30 years.
cooperative housing
A form of housing in which a building containing a number of housing units is owned by a nonprofit organization whose members rent the units.
class action lawsuit
A legal action taken by a few individuals on behalf of all the people who have suffered the same alleged injustice.
lease
A legal document that defines the conditions of a rental agreement.