Glossary of Mortgage Terms

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.

A spec house is a new home built by a builder or developer without a specific buyer in mind. It is meant to be sold on the open market based on current real estate demand and popular design trends.

Your local government uses a special assessment tax, which is an extra charge on your property tax bill, to pay for a specific neighborhood improvement, such as new roads or sewer lines.

Sweat equity is the increase in a property's value that comes from the homeowner's own work and improvements, not from hiring professionals to do the work.