Abstract of Title - A condensed history or summary of all transactions affecting a particular tract of land.

Adjustable Rate Mortgages - Mortgages with an interest rate that may change up or down depending on an indicator. These are usually based something like the current Treasury bill rate.

Affidavit - A sworn statement in writing.

Amortize - To reduce a debt by means of regular periodic payments which include amounts applicable to both principal and interest.

APR - Annual Percentage Rate. On some mortgages the APR is higher than your actual mortgage rate.

Assumption - A mortgage that allows a new owner to take over payments. The original borrower remains liable on the mortgage note.

Deed - A written document by which the ownership of land is transfered from one person to another.

Deposit or Earnest Money - Advance payment of part of the purchase price to bind a contract for property.

Due-on-Sale Clause - A provision in a mortgage or deed of trust which requires the loan to be paid in full if a property is sold or transfered.

Equity - The interest or value which an owner has in real estate over and above the debts against it.

Escrow - (1) A procedure whereby a disinterested third party, such as Ohio Title Corporation handles legal documents and funds on behalf of a seller and buyer. (2) Money that is kept by the mortgage company to ensure that taxes can be paid in full when due. This is paid up front on settlement statement lines 1001 - 1006 and is added to the mortgage payment monthly over the prinicial and interest figure.

FNMA (Fannie-Mae) - The Federal National Mortgage Association, a federally sponsored private corporation which provides a secondary market for housing mortgages.

Fixed Rate Mortgages - Mortgages with a fixed interest rate. You payment for principal and interest will not change for the life of the loan. Your monthly payment may change if taxes or insurance rates change.

FHA - The Federal Housing Administration. An agency of the federal government which insures private loans for financing of new and existing housing and for home repairs under government approved programs.

FHLMC (Freddie Mac) - Federal Home Loan Mortgage Corporation. An affiliate of the Federal Home Loan Bank, which creates a secondary market in conventional residential loan and FHA and VA loans by purchasing mortgages from members of the Federal Reserve System and the Federal Home Loan Bank System.

Foreclosure - Legal process by which a mortgagor of real property is deprived of his interest in that property due to failure to comply with terms and conditions of the mortgage.

Grantee - A person who acquires an interest in land by deed, grant or other written instrument.

Grantor - A person who, by a written instrument, transfers to another interest in land.

Hazard insurance - The homeowner's insurance policy.

Heir - One who might inherit or succeed to an interest in lands under the rules of law applicable where an individual dies without leaving a will.

Instrument - A written document.

Loan origination fees - Money sometimes required by the lender to be paid to start the work of approving a mortgage.

Judgment - A decree of a court.

Lien - A hold, a claim or charge allowed a creditor upon the lands of a debtor.

Mortgagee - A designation for the mortgage lender on lands.

Mortgagor - A designation for the mortgage borrower on lands.

MIP - Mortgage insurance protection

Note - A written promise to pay a certain amount of money, at a certain time, or in a certain number of installments. It usually provides for payment of interest and its payment is at times secured by a mortgage.

P.O.C. - Paid outside of closing. Sometimes the lender requests this money before settlement. If you pay any charges before settlement they should be evidenced on the settlement statement. They are written on the respective line outside of your column. They should also be marked P.O.C.

Point - a percentage point. Equal to one percent of the loan amount.

Power of Attorney - An instrument authorizing another to act on one's behalf as his agent or attorney-in-fact.

PMI - Private mortgage insurance.

PMM - Purchase money mortgage. A mortgage given by the seller simultaneously with the purchase of real estate to secure the unpaid balance of the purchase price.

Pro-Rate - To allocate between seller and buyer their proportionate share of an obligation paid or due.

Real Property - Land and that which is affixed to it.

Refinance Rate - The rate charged to policies or endorsements qualifying for Refinance Rates under applicable Rate Rules.

Reissue Rate - The rate  charged to new policies or qualifying endorsements or portions of amounts of new policies or endorsements, to the extent such policies or endorsements qualify for Reissue Rates under applicable Rate Rules.

Second Mortgage - A mortgage, the lien of which is subordinate to that of another mortgage.

Survey - The process of measuring land to determine its size, location and physical description and the resulting drawing or map.  NOTE: There are many types of surveys.

Tax Service Fee - A fee paid to a service company to monitor payment of the real estate taxes for the lender's benefit.

Title - The evidence or right a person has to the ownership and possession of land.

Title Insurance - Insurance against loss or damage resulting in defects or failure of title to a particular parcel of real property.

Title Insurance Commitment - A report issued by a title insurance company binding or committing the title insurance company to issue the form of policy designated in the commitment upon compliance with and satisfaction of requirements set forth in the commitment.

Title Search - An examination of public records to disclose the current facts regarding ownership of real estate.

Transfer taxes - Money paid to the county and state when property is sold ranging from $1.00 per thousand of the sales price to $4.00 per thousand of the sales price.  NOTE: Franklin county is $1.00 per thousand of the sales price.

Will - A written document properly witnessed, providing for the distribution of property owned by the deceased.