Glossary of Mortgage Terms

A home appraisal is a licensed professional’s independent estimate of a property’s market value, used by mortgage lenders to confirm the home is worth the loan amount before they approve financing.

Most mortgage lenders require a written opinion from a licensed professional about the current market value of a home before they will approve a purchase or refinance loan.

Home appreciation is the rise in a home's market value over time. This can happen because of things like supply and demand, location, the economy, and improvements made to the home.

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.

Homeowners can get a home improvement loan to pay for repairs, renovations, or upgrades to their property. These loans can be secured or unsecured, depending on the type of loan.

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.