The penalty a borrower must pay when a payment is made a stated number of days after the due date.

An alternative financing option that allows low and moderate income home buyers to lease a home with an option to buy. Each month’s rent payment consists of principal, interest, taxes and insurance (PITI) payments on the first mortgage plus an extra amount that accumulates in a savings account for a down payment.

A person’s financial obligations. Liabilities include long term and short term debt.

A claim upon a piece of property for the payment or satisfaction of a debt or obligation.

For an adjustable rate mortgage (ARM), a limit on the amount that payments can increase or decrease over the life of the mortgage.

For an adjustable rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease over the life of the loan. See cap.

A sum of borrowed money (principal) that is generally repaid with interest.

The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage.

A lender’s guarantee that the mortgage rate quoted will be good for a specific number of days from the day of application.