Amortization - A loan is amortized when it is repaid with periodic payments over a specific term.
Earnest Money - A deposit made to a home seller showing the buyer's good faith in the transaction.
Equity - Difference in the current market value of the property and the amount the borrower still owes.
FHA - Federal Housing Administration - A governmental agency that is the largest insurer of residential loans in the world.
Lien - A claim against property made by someone in order to secure payment of a debt.
P.I.T.I. - Principal, Interest, Taxes and Insurance
P.M.I. - Private Mortgage Insurance - A policy to protect lenders against a loss if a borrower defaults.
Survey - An assessment that provides clear measurement and definition of a property's boundaries.
USDA - U.S. Department of Agriculture - Offers loans designed to encourage home purchases in areas that aren't highly populated.
VA - A loan guaranteed by the U.S. Department of Veteran's Affairs. To participate, one has to be or have been active military. Tenure and/or deployment requirements may apply.