Glossary of Mortgage Terms

A no-closing-cost mortgage is a home loan where the lender covers your upfront closing fees in exchange for a higher interest rate or a larger loan balance.

If a mortgage doesn't meet Fannie Mae and Freddie Mac's size, credit, or underwriting standards, it's a non-conforming loan.

A non-QM loan is a residential mortgage that does not meet the qualified mortgage rules set forth by the Consumer Financial Protection Bureau. It enables borrowers with non-traditional income or credit profiles to provide alternative documentation.

A nontraditional mortgage is any home loan that falls outside the standard 30-year fixed-rate structure, giving borrowers different repayment options, qualification paths, or interest rate arrangements.

A notice of default is an official written warning to your lender that your mortgage payments are seriously behind, and the lender may start the foreclosure process if you don’t fix it.

An open house is a planned event where people can look at a house that is for sale. It is usually hosted by the seller's real estate agent for a set amount of time, usually one to three hours.

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.