Appraisal: A professional opinion of the market value of a property as of a specific date

Cash Out: A loan transaction in which the borrower receives funds at the time of closing 

Cash Out Refinance: A refinance transaction where the amount of money received from the loan exceeds the total money needed to repay the existing first mortgage, closing costs, points, and the amount of money required to satisfy any outstanding subordinate mortgage liens 

Closing: The occasion where a sale is finalized; the buyer signs the mortgage and closing costs are paid

Down Payment: The part of a purchase price, which the buyer pays in cash and does not finance with a mortgage

Earnest Money: The deposit money given to the seller, or seller's agent, by the potential buyer upon the signing of the agreement of sale to show that he is serious about buying the home.  If the sale goes through, the money is put toward the down payment  

Equity: The difference between the appraised value of your home and your outstanding mortgage balance

Good Faith Estimate: An estimate of costs, which a borrower is likely to incur in connection with closing

Loan Modification: A change in a mortgage that results in more affordable payments.  For more information on loan modifications, please see the section below

Lock: A commitment you obtain from a lender assuring you a particular interest rate for a period of time (expressed in days.)  A lock protects the borrower should interest rates rise between the time of application and closing 

Mortgage: A legal document that pledges a property to the lender as a security for a payment of a debt.  For more information about different types of mortgages, please visit: Mortgages

No Cash-Out Refinance: The refinancing of an existing mortgage for an amount equal to or less than the existing outstanding loan balance plus additional loan settlement cost.  A no cash-out refinance is used primarily to lower interest rate on a loan and/or to change the term of the mortgage

Pre-Qualification: The process of determining how much money a prospective homebuyer will be eligible to borrow before application 

Reverse Mortgage: A loan that enables elderly homeowners to use their home's equity without selling their home or moving from it.  For more information on reverse mortgages, please visit: Reverse Mortgages

Title: The written evidence that proves rights of ownership and possession of a particular property

Underwriting: The process of verifying data and approving a loan