Glossary of Mortgage Terms

Home title theft is a type of fraud where someone uses forged documents or stolen personal information to transfer ownership of your property without your knowledge or permission.

A homeowners insurance binder is a temporary document from your insurance company that proves you have coverage on a property while the full policy is still being processed.

A homeowners insurance deductible is the amount of money you pay out of pocket on a covered claim before your insurance company pays the rest, and it directly affects how much you spend on premiums each year.

HomeReady is a Fannie Mae conventional mortgage that lets qualified low-to-moderate income borrowers buy a home with as little as 3% down and reduced mortgage insurance costs.

A homestead exemption is a legal protection that can lower the property taxes on your main home and keep some of your home equity safe from creditors.

A house deed is a legal document that shows that a seller has given a buyer ownership of a property and serves as permanent proof that the new owner owns the property.

People who are "house poor" spend so much of their income on housing costs that they can't pay for everyday things, save for the future, or have fun.

A housing bubble is a period of rapidly rising home prices driven by high demand, loose lending, or speculation that eventually collapses when the market can no longer support inflated values.

HUD is the U.S. Department of Housing and Urban Development, a federal agency that oversees national housing policy, administers FHA mortgage insurance, enforces fair housing laws, and funds community development programs.

A HUD home is a house that was foreclosed on and bought with an FHA-insured mortgage. The U.S. Department of Housing and Urban Development now owns it and sells it to the public, usually for less than market value.