Catskill Country Living Real Estate Glossary

Title Insurance Policy

Insurance protecting buyers and lenders against financial loss from title defects.

Term

The total length of time over which a mortgage will be fully repaid.

Survey

A professional measurement that precisely establishes a property's boundaries and features.

Real Estate Sales Contract

The legally binding agreement between buyer and seller governing the terms of a property sale.

Rate Lock

A lender's guarantee that your quoted interest rate will hold through closing.

Rate Cap

Limits on how much an ARM's interest rate can change per adjustment and over the loan's lifetime.

Private Mortgage Insurance (PMI)

Insurance protecting the lender if the borrower defaults, required when the down payment is under 20%.

Prepayment Penalty

A lender fee for paying off a mortgage before the agreed term expires.

Pre-Approval

A lender's conditional loan commitment based on a full review of the borrower's finances.

Point

An upfront fee of 1% of the loan amount, often paid to reduce the interest rate.

Origination Fee

A lender's charge for processing and underwriting a mortgage application.

Negative Amortization

When loan payments fall short of interest owed, causing the balance to grow over time.

Mortgage Life Insurance

Life insurance designed to pay off a mortgage balance upon the borrower's death.

Margin

The fixed lender percentage added to the ARM index to determine the adjusted interest rate.

Mansion Tax

A New York State transfer tax of 1% on all residential sales of $1 million or more.