Interest
A fee charged for the use of money .

Inflation
Tthe number of dollars in circulation exceeds the amount of goods and services available for purchase inflation results in a decrease in the dollars value.

Fannie Mae Federal National Mortgage Association
A federally-chartered enterprise owned by private stockholders that purchases residential mortgages and converts them into securities for sale to investors by purchasing mortgages Fannie Mae supplies funds that lenders may loan to potential homebuyers.

ARM Adjustable Rate Mortgage
A mortgage loan subject to changes in interest rates when rates change ARM monthly payments increase or decrease at intervals determined by the lender the Change in monthly -payment amount however is usually subject to a Cap.

Freddie Mac Federal Home Loan Mortgage Corporation
A federally-chartered corporation that purchases residential mortgages securitizes them and sells them to investors this provides lenders With funds for new homebuyers.

PMI Private Mortgage Insurance
Privately-owned companies that offer standard and special affordable mortgage insurance programs for qualified borrowers with down payments of less than 20% of a purchase price.

Lock-in
Since interest rates can change frequently many lenders offer an interest rate lock-in that guarantees a specific interest rate if the loan is closed within a specific time.

Delinquency
Failure of a borrower to make timely mortgage payments under a loan agreement.

Loan-to-value LTV ratio
A percentage calculated by dividing the amount borrowed by the price or appraised value of the home to be purchased the higher the LTV the less cash a borrower is required to pay as down payment.

Judgment
A legal decision when requiring debt repayment a judgment may include a property lien that secures the creditors claim by providing a collateral source.