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

Application
The first step in the official loan approval process this form is used to record important information about the potential borrower necessary to the underwriting process.

Equity
An owners financial interest in a property calculated by subtracting the amount still owed on the mortgage loonsfrom the fair market value of the property.

Condominium
A form of ownership in which individuals purchase and own a unit of housing in a multi-unit complex the owner also shares financial responsibility for common areas.

Interest
A fee charged for the use of money .

Annual Percentage Rate APR
Calculated by using a standard formula the APR shows the cost of a loan expressed as a yearly interest rate it includes the interest points mortgage insurance and other fees associated with the loan.

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.

Appraisal
A document that gives an estimate of a propertys fair market value an appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property.

Amortization
Repayment of a mortgage loan through monthly installments of principal and interest the monthly payment amount is based on a schedule that will allow you to own your home at the end of a specific time period for example 15 or 30 years

Index
A measurement used by lenders to determine changes to the Interest rate charged on an adjustable rate mortgage.