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.