Glossary of Mortgage Terms

The secondary mortgage market is where lenders sell home loans they have already made to investors and government-sponsored businesses. This gives those lenders more money to lend to more home buyers.

The Section 504 Home Repair Program is a USDA program that gives very-low-income rural homeowners access to low-interest loans and grants so they can fix, improve, or make their homes safer.

Section 8 is a federal housing assistance program, officially called the Housing Choice Voucher Program, that helps low-income families, seniors, and people with disabilities afford safe rental housing in the private market.

The Secured Overnight Financing Rate (SOFR) is a standard interest rate that is set based on overnight rates. Lenders use U.S. Treasury repurchase agreements to set rates on adjustable-rate mortgages and other loans.

A seller’s disclosure is a written document that requires a property seller to share known defects, past repairs, and material conditions of a home with potential buyers before closing.

Shadow inventory refers to homes that aren't listed for sale on the open market but could become available, including properties in foreclosure, bank-owned homes, and houses held back by sellers waiting for better conditions.

A short sale is a type of real estate deal in which a homeowner sells their home for less than what they owe on their mortgage, and the lender agrees to accept the lower amount.

A short-term loan is a small amount of money that you borrow and pay back quickly, usually within a few weeks to a year. It usually costs more than a regular personal loan.

A short-term mortgage is a home loan that you have to pay back in 15 years or less. It can save you a lot of money on interest, but your monthly payments will be higher.

A single-family home is a freestanding residential property built on its own lot, designed to house one household, with no shared walls, roof structures, or utilities connecting it to another dwelling.