A type of fixed-rate mortgage, which contains a clause that entitles the borrower to reduce the fixed-interest-rate charge on the mortgage once, and early…

Land plus anything permanently fixed to it, including buildings, sheds and other items attached to the structure. Unlike other investments, real estate…

A person with a state/provincial license to represent a buyer or a seller in a real estate transaction in exchange for commission. Most agents work for…

An organization that builds or buys a group of properties and then sells them to investors as rental properties. In exchange for finding tenants, handling…

A security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. REITs receive special…

A direct participation program formed to build new structures and generate income from existing property, or profit from the capital appreciation of undeveloped…

A special purpose vehicle (SPV) that is used to pool mortgage loans and issue mortgage-backed securities (MBS). Real estate mortgage investment conduits…

A complex pool of mortgage securities created for the purpose of acquiring collateral. This base is then divided into varying classes of securities backed…

A company that invests in real estate and whose shares trade on a public exchange. A real estate operating company (REOC) is similar to a real estate…

Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for…

This act was designed to protect potential homeowners and enable them to become more intelligent consumers. RESPA requires that lenders provide greater…

In the United States a designation used to describe a member of the National Association of Realtors (NAR). The term "realtor" is a registered trademark…

The process of re-determining the value of property or land for tax purposes. Property is usually reassessed on an annual basis. You may request a "reassessment…

A clause in a loan contract that causes an unscheduled recasting of the loan's remaining amortization schedule if and when certain conditions are met…

The fee a government charges for reporting a real estate purchase or sale into the public record. This is the same as an administration fee.

A period during which old debt obligations are being replaced with newer obligations with different terms. A typical refi bubble usually occurs when homeowners…

A situation where a large amount of mortgage refinancing occurs as a result of a drop in interest rates. The larger the drop in rates, the larger the…

1. The risk that an early unscheduled repayment of principal on mortgage-backed securities(MBS) will occur when the underlying mortgages are refinanced…

A record of real estate deeds or other land titles that is maintained by a local government official. The register of deeds will be used in conjunction…

Exchange-traded funds that invest the majority of assets in equity REIT securities and related derivatives. REIT ETFs are passively managed around an…

A type of mortgage that is designed for relocating/transferring employees. Corporations sometime make special mortgages available for relocating employees…

A type of contract-law sharing arrangement. Rental-pool arrangements resemble time-shares in the sense that in both cases, different parties divide the…

A loan on which the borrower was behind on payments (delinquent) by at least 90 days but has resumed making payments. The payments that the borrower missed…

The total dollar amount that must be posted up front by the buyer to close a mortgage or to refinance an existing property. The required cash amount can…

A type of interest payment received by investors in a real estate mortgage investment conduit (REMIC). Investors receive interest payments after all…

Any type of agreement that requires the buyer to either take or abstain from a specific action. In real estate transactions, restrictive covenants are…

The withdrawal of a bid, offer or statement before any relevant party acts on the information provided. In most circumstances, retracting an offer within…

A type of property exchange wherein the replacement property is acquired first, and then the current property is traded away. Reverse exchanges were created…

A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage (principal or interest) is…

An alternative to a home equity line of credit (HELOC) and refinancing that allows homeowners to access the equity in their home. The agreement is offered…

A contractual obligation by the owner of an asset to a rights holder to negotiate the sale of an asset with the rights holder before offering the asset…

In general, the right of a person or company to purchase something before the offering is made available to others. For example, a football team may…

A right under federal law set forth by the Truth in Lending Act that gives a borrower the right to cancel a home equity loan or line of credit with a…

Mortgage lenders' offers of different interest rates and loan terms to different borrowers based on a grading of the credit worthiness of each borrower…

A term which refers to including loan costs into the initial principal balance of a loan. This is a common practice by mortgage borrowers who do not have…

A mortgage in which the unpaid balance (outstanding principal) must be refinanced every few years (often three to five) at current interest rates, subject…

An administrative division within the U.S. Department of Agriculture that manages programs that focus on rural housing and community service facilities…

A group of indexes that tracks changes in home prices throughout the Untied States. The indexes are based on a constant level of data on properties that…

A legal contract that obligates a buyer to buy and a seller to sell a product or service. SPAs are found in all types of businesses but are most often…

A recalculation of the remaining amortization schedule of a mortgage at a certain date set and known in advance. A scheduled recast is part of some mortgage…

A type of loan associated with subprime lending and borrowers with a tainted credit history. Second chance loans offer a borrower a chance to rebuild…

A type of subordinate mortgage made while an original mortgage is still in effect. In the event of default, the original mortgage would receive all proceeds…

The market where mortgage loans and servicing rights are bought and sold between mortgage originators, mortgage aggregators (securitizers) and investors…

A section of the U.S. Internal Revenue Service Code that allows investors to defer capital gains taxes on any exchange of like-kind properties for business…

This is a specific tax credit that allows taxpayers to receive capital gains treatment on the sale of subdivided lots of land. The purpose of the Section…

A part of the IRS code stating that depreciable property that has been sold at a price in excess of depreciated or salvage value may qualify for favorable…

A section of the IRS code stating that a gain from selling real estate that has been subjected to accelerated depreciation should be treated as ordinary…

A type of payment-option adjustible-rate mortgage with a fixed-interest-rate period. The mechanics of a secure option arm are very similar to a payment…

A monetary deposit given to a lender, seller or landlord as proof of intent. Security deposits can be either refundable or nonrefundable, depending on…

A loan for which the periodic payments consist of both principal and interest such that the loan will be paid off by the end of a scheduled term. Assuming…