Mortgage and Loan Glossary (H)
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
habendum clause
The "to have and to hold" clause that defines the amount
of the estate granted in the deed.
half bath
A bathroom in a home that contains a wash sink and a toilet, but no
bathtub or shower stall.
hangout
The principal balance of a loan remaining when the term of the loan
is beyond the term of a lease.
hazard insurance
Form of insurance that compensates for physical damage to a property
from fires, storms or other hazards.
home equity conversion mortgage (HECM)
A special type of mortgage that enables seniors to convert the equity
in their homes into cash, using a variety of payment programs that
address their specific financial circumstances. The borrower does
not qualify on the basis of income but on the value of the subject
property. In addition, the loan does not have to be repaid until
the borrower no longer occupies the property. Also called a reverse
mortgage.
home equity line of credit (HELOC)
A loan secured by real property, usually in a subordinate position,
that allows the borrower to receive the loan proceeds in the form
of multiple advances up to a limit that represents a maximum percentage
of the borrower's equity in a property.
home equity loan
A loan secured by a second mortgage on one's principal residence, generally
to be used for some non-housing expenditure. A traditional home equity
loan provides lump-sum proceeds at the time the loan is closed.
home inspection
A complete and detailed inspection that examines and evaluates the
mechanical and structural condition of a property. A complete and
satisfactory home inspection is often required by the homebuyer.
Compare with appraisal.
homeowners association
A nonprofit association that manages the common areas of a condominium
project or planned unit development (PUD). In a condominium development,
the association has no ownership interest in the common elements.
In a PUD, it holds title to the common elements of the project.
homeowners insurance
Type of insurance policy that combines hazard insurance and personal
liability coverage for a residence and its contents.
homeowners warranty (HOW)
A type of insurance policy that covers repairs to certain parts of
a home for an agreed upon period of time. It is typically provided
by the contractor or seller as a condition of the sale.
housing expense ratio
The percentage of the gross monthly income that is required to pay
housing expenses.
Housing Starts
Economic indicator that measures the number of residential units on
which construction is begun each month. Monthly percent changes reflect
the rate of change of such activity. The level of housing starts
is widely followed as an indicator of residential construction activity.
Frequency: monthly. Source: Commerce Department.
HUD
The U.S. Department of Housing and Urban Development.
HUD median income
Median family income for a particular county or metropolitan statistical,
as estimated by the Department of Housing and Urban Development (HUD).
HUD-1 settlement statement
A document in table form that provides an itemized listing of the funds
that are payable at the closing of a mortgage loan. Items that may
appear on the statement include commissions, recording fees, points,
appraisal costs and escrow amounts. Most items on the statement are
numbered according to a standardized system. Commonly known as the
closing statement or settlement statement.