Habendum Clause - Top

The “to have and to hold” clause that defines the amount of the estate granted in the deed.

Half Bath - Top

A half bathroom in a home that contains a wash sink and a toilet, but no bathtub or shower stall.

Hangout - Top

The principal balance of a loan remaining when the term of the loan is beyond the term of a lease.

Hazard Insurance - Top

Insurance that protects a homeowner against the cost of damages to property caused by fire, windstorms, and other common hazards.  Also referred to as homeowner's insurance.

Home Equity Conversion Mortgage (HECM) - Top

A special type of mortgage that enables seniors to convert the equity in their homes to cash. A type of Reverse Mortgage.

Home Equity Line of Credit (HELOC) - Top

A HELOC is a revolving line of credit with a variable interest rate, based on the available equity in a mortgagor’s home and other qualifying criteria. It is usually in a subordinate position, and allows a customer to advance and repay up to a certain amount by writing a check. Payments during the draw period are usually interest only, with amortized payments required after a certain time, typically ten years.

Home Equity Loan - Top

A Home Equity Loan is a loan secured by a subordinate mortgage on one's principal residence, generally used for home improvement or non-housing expenditures such as debt consolidation, education, an auto purchase, etc. A home equity loan provides lump-sum proceeds at the time the loan is closed. It is fully amortized with a fixed interest rate and payments.

Home Inspection - Top

A complete and detailed inspection that examines and evaluates the mechanical and structural condition of a property. A complete and satisfactory home inspection is often required by the homebuyer. Not to be confused with appraisal.

Homeowner's Insurance - Top

Insurance that protects a homeowner against the cost of damages to property caused by fire, windstorms, and other common hazards. Also referred to as hazard insurance.

Homeowner’s Warranty - Top

A type of insurance policy that covers repairs to certain parts of a home for an agreed upon period of time. It is typically provided by the contractor or seller as a condition of the sale

Homeowners Association - Top

A nonprofit association that manages the common areas of a condominium project or planned unit development (PUD). In a condominium development, the association has no ownership interest in the common elements. In a PUD, it holds title to the common elements of the project.

Homeowners Association Dues - Top

Payments made to an association responsible for the maintenance of the common areas in a condominium, PUD, or subdivision development.

Housing Ratio - Top

A standard calculation performed by mortgage lenders to determine if a borrower qualifies for a specific loan type and amount. It is calculated by dividing the monthly housing expense (Principal, Interest, Taxes and Insurance) by the borrower’s monthly gross income. Also referred to as a front-end ratio or a top ratio.

Housing Starts - Top

Economic indicator that measures the number of residential units on which construction is begun each month. Monthly percent changes reflect the rate of change of such activity. The level of housing starts is widely followed as an indicator of residential construction activity. Frequency: monthly. Source: Commerce Department.

HUD - Top

HUD, also known as the U.S. Department of Housing and Urban Development, insures home mortgage loans made by lenders meet minimum standards for such homes. FHA is an area of HUD that insures low downpayment mortgages granted by some lenders.

HUD Median Income - Top

Median family income for a particular county or metropolitan statistical area, as estimated by the Department of Housing and Urban Development (HUD).

HUD-1 Statement - Top

Also referred to as the closing statement or the settlement statement, this is the document that provides line by line detail of the financial details related to a specific real estate transaction such as the fees paid by the seller and the buyer for a purchase transaction or the fees paid by the borrower for refinances.