Items that generally must be paid for at the time of closing and are generally recurring charges. Prepaid items may include the following:
– First year premiums for hazard, flood, and Mortgage insurance, as applicable to the transaction,
– Prorated interest,
– Any special assessments which must be prepaid (i.e., water/sewer connection, etc.) and,
– Escrow accounts for any of the above.

The results of a title search by a title company prior to issuing a title binder or commitment to insure clear title.

A legal document authorizing one person to act on behalf of another.

A point is one percent of the amount of the mortgage loan.

A map or chart of a lot, subdivision or community drawn by a surveyor showing boundary lines, buildings, improvements on the land, and easements.

A Real Estate project in which each unit owner has title to a residential lot and building and a non-exclusive easement on the common areas of the project.

The most common components of a monthly Mortgage payment.

A permanent reduction to the interest rate for the life of the loan. The funds for the buydown may come from the borrower, lender, seller or a third party.

The ratio of the borrower¹s total housing payment (principal, interest, taxes insurance, HOA fees, special assessments, and subordinate financing) that is used to measure the borrower’s capacity to manage the housing expense: also known as “housing debt-to-income ratio.”

The amount charged by a lender to originate and close a mortgage loan.