| Term |
Definition |
| Hazard Insurance |
A form of insurance in
which the insurance company protects the insured from specified
losses, such as fire, windstorm and the like. |
| Home Equity Line of
Credit (HELOC) |
Secondary financing that
consists of a revolving line of credit secured by a lien junior to a
mortgage. |
| Home Equity Loan |
A loan in real estate
property that is used to secure or guarantee the amount borrowed.
Sometimes referred to as a second mortgage or borrowing against your
home. The loan allows you to tap into your home's built-up equity,
which is the difference between the amount your home could be sold
for, and any claims held against it. People often use a home equity
loan for home improvements or to pay for a new car. A home equity
loan is a good way to borrow money for two main reasons. First, the
interest rate is usually one of the lowest loan rates a borrower can
get. Also, the interest you pay on the loan is usually
tax-deductible. But taking out a home equity loan also means the
lender can take possession of the home if the loan isn't repaid.
This is why some people decide to not borrow against their home, and
may decide to take out a personal loan. But for many borrowers, a
home equity loan can be the best loan option. Your best loan option
is the loan that best meets your needs. |
| Home Value models |
Standard used to derive
data from millions of transactions; supported by property values for
hundreds of counties in all 50 states. When you submit a
conventional/conforming transaction, the service automatically
searches Home ValueSM models to determine if it can support the
value of the transaction, based on the loan's overall risk profile.
|
| Housing
Expenses-to-Income Ratio |
The ratio, expressed as a
percentage, which results when a borrower's housing expenses are
divided by his/her net effective income (FHA/VA loans) or gross
monthly income (Conventional loans). |
| HUD |
U.S. Department of Housing
and Urban Development. Office of Housing/Federal Housing
Administration within HUD insures home mortgage loans made by
lenders and sets minimum standards for such homes.
|
