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Below is a list of frequently used terms:

acre
A measure of land, 43560 square feet.

application
A form used to apply for a mortgage loan.

broker
A person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them.

closing costs
Expenses (over and above the price of the property) incurred by buyers and sellers in transferring ownership of a property. Closing costs normally include an origination fee, an attorney's fee, taxes, an amount placed in escrow, and charges for obtaining title insurance and a survey.

down payment
The part of the purchase price of a property that the buyer pays in cash and may not borrow.

FHA mortgage
A mortgage that is insured by the Federal Housing Administration (FHA). Also known as a government mortgage.

interest rate
The rate of interest in effect for the monthly payment due.

lock-in
A written agreement in which the lender guarantees a specified interest rate if a mortgage goes to closing within a set period of time. The lock-in also usually specifies the number of points to be paid at closing.

principal balance
The outstanding balance of principal on a mortgage. The principal balance does not include interest or any other charges. See remaining balance.

second mortgage
A mortgage that has a lien position subordinate to the first mortgage.

title company
A company that specializes in examining and insuring titles to real estate.