Glossary of Mortgage Terms

With an open-end mortgage, you can borrow more money later, up to a certain amount, without having to get a second loan or refinance.

Your lender will charge you an origination fee at closing to cover the costs of processing, underwriting, and funding your mortgage loan.

Ownership interest in a property is the set of legal rights you hold as an owner or co-owner of real estate, covering how you can use, share, and pass on your stake in the home.

Passive real estate investing is a way to earn money from property ownership or real estate-backed assets without handling day-to-day management, maintenance, or tenant relationships yourself.

A piggyback loan is a second mortgage taken out at the same time as your main home loan, letting you split the purchase price across two loans so you can put less cash down and still skip private mortgage insurance.

PITI stands for principal, interest, taxes, and insurance—the four parts that make up most monthly mortgage payments and determine how much house you can afford.

A pocket listing is a property that is for sale but not listed on the Multiple Listing Service. Instead, it is sold privately through a real estate agent's personal network and connections.

A portfolio loan is a mortgage that a lender keeps on its own books instead of selling it, which gives the lender more freedom to set its own terms and qualification rules.

If the borrower stops making payments, a power of sale clause in a mortgage or deed of trust lets the lender sell the home without going to court.

A pre-inspection is a professional home inspection that a seller (or sometimes a buyer) orders before listing or making an offer, giving both sides a clearer picture of the property’s condition early in the transaction.