This insurance covers your home and its contents against damage and theft, as well as you, the owner, against personal liability if someone is injured while on your property.

Tax on intangible assets calculated as a percentage.

Lot description which is registered, as we know it, in the Land Register.

A one time set up fee charged by the lender.

(LTV) The amount of the mortgage in relation to the lesser of the sales price or appraised value of the property.

Lender's guarantee of rate, discount and program for specified term. Lock-in typically runs 15 to 60 days from borrower application.

(Loan-to Value Ratio) The amount of the mortgage in relation to the lesser of the sales price or appraised value of the property.

A security interest on real property granted to a lender.

Records the terms and conditions of the mortgage contract.

Lender

Borrower

One-time fee which is charged by the lender or mortgage broker and is usually calculated as a percentage of the loan amount (points).

Established abbreviation for principal, interest, taxes, insurance. When financing the regular monthly payment usually include PITI.

Charges on a mortgage loan that must be prepaid at closing by purchaser.

1. Per diem interest is interest from date of closing to end of month
2. Homeowner's insurance must be prepaid for a minimum of 14 months (escrowed)
3. Property taxes prepayment varies from 2 months to 12 months, depending on when taxes are due (escrowed)

Prepayment compensation. Most loans in the U.S. do not have a prepayment penalty which means that the borrower can pay off his loan at any time without any penalty interest.

The total amount of money borrowed.

The action of taking the loan thru the loan process with the lender.

The borrower makes an unconditional promise in writing to pay back the funds borrowed to the lending bank.

An interest rate used to calculate the borrower's ability to qualify, which may differ from the actual interest rate charge.

The storing the transfer of ownership and/or debts and restrictions of a property in public and official records.