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home :: Mortgage Terms
Glossary H
Mortgage Terms Glossary
H
Hazard insurance: a form of insurance
that protects the owner of the insured property against losses from
physical damage such as fire and tornadoes. Mortgage lenders often
require a borrower to maintain an amount of hazard insurance on the
property that is equal at least to the amount of the mortgage loan.
HELP: Homebuyer Education Learning
Program; an educational program from the FHA that counsels people
about the homebuying process; HELP covers topics like budgeting,
finding a home, getting a loan, and home maintenance; in most cases,
completion of the program may entitle the homebuyer to a reduced
initial FHA mortgage insurance premium-from 2.25% to 1.75% of the
home purchase price.
Home equity loan: A mortgage on the
borrower's principal residence, usually for the purpose of making
home improvements or debt consolidation.
Home inspection: an examination of the
structure and mechanical systems to determine a home's safety; makes
the potential homebuyer aware of any repairs that may be needed.
Home warranty: offers protection for
mechanical systems and attached appliances against unexpected
repairs not covered by homeowner's insurance; ,overage extends over
a specific time period and does not cover the home's structure.
Homeowner's insurance: an insurance
policy that combines protection against damage to a dwelling and Is
contents with protection against claims of negligence )r
inappropriate action that result in someone's injury or )property
damage.
Housing affordability index: an index
that indicates what proportion of homebuyers can afford to buy an
average-priced home in specified areas. The most well known housing
affordability index is published by the National Association of
Realtors.
Housing counseling agency- provides
counseling and assistance to individuals on a variety of issues,
including loan default, fair housing, and homebuying.
Housing expenses-to-income ratio: see
debt-to-income ratio.
HUD: the U.S. Department of Housing and
Urban Development; established in 1965, HUD works to create a decent
home and suitable living environment for all Americans; it does this
by addressing housing needs, improving and developing American
communities, and enforcing fair housing laws.
HUD1 Statement: also known as the
"settlement sheet," it itemizes all closing costs; must be given to
the borrower at or before closing.
HVAC: Heating, Ventilation and Air
Conditioning; a home's heating and cooling system.
Related
Topics:
Home Equity Lines of
Credit Get Out of Debt
First Time Home Buyer
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