Glossary of Mortgage Terms

A home equity line of credit (HELOC) is a type of credit line that is backed by the value of your home. It lets you borrow, pay back, and borrow money again up to a certain amount during a set draw period, usually at a variable interest rate.

A home equity loan is a second mortgage with a fixed interest rate that lets homeowners borrow a lump sum of money based on the difference between the current market value of their home and the amount they still owe on their mortgage.

Home Possible® is a Freddie Mac mortgage program that allows low- to moderate-income borrowers buy a home with as little as 3% down and flexible credit requirements.

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.