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Mortgage Glossary part 2

HOME EQUITY LINE OF CREDIT: A type of mortgage loan that allows the borrower to draw cash against the equity in his home.

HOME INSPECTION: A complete examination of a building to determine its structural integrity and uncover any defects in materials or workmanship which may adversely affect the property or decrease its value.

HOMEOWNER'S ASSOCIATION: An organization of home owners in a particular neighborhood or development formed to facilitate the maintenance of common areas and to enforce any building restrictions or covenants.

HOMEOWNER'S INSURANCE: A policy which covers a home owner for any loss of property due to accident, intrusion or hazard.

INTEREST RATE: A percentage of a loan or mortgage value that is paid to the lender as compensation for loaning funds.

LATENT DEFECTS: Any defect in a piece of property which is not readily apparent, but which has an impact of the value. Structural damage or termite infestation would be examples of latent defects.

LIABILITIES: A persons outstanding debt obligations.

LIEN: Any claim against a piece of property resulting from a debt or other obligation.

LOAN-TO-VALUE RATIO (LTV): The comparison of the amount owed on a mortgaged property to its fair market value..

LOCK-IN: An agreement between a lender and a borrower, guaranteeing an interest rate for a loan if the loan is closed within a certain amount of time.