A construction loan made during completion of a building or a project. A permanent loan usually replaces this loan after completion.

The simple interest rate, stated as a percentage, charged b a lender on the principal amount of borrowed money.

A charge paid for borrowing money.

A loan insured by HUD-FHA or a private mortgage insurance company.

Borrowed money that is repaid in successive payments, usually at regular intervals.

A published interest rate complied from other indicators such as U.S. Treasury bills or the monthly average interest rate on loans closed by savings and loan organizations. Mortgage lenders use the index figure to establish rates on adjustable rate mortgages (ARM’s).

That portion of a borrower’s monthly payment held by the lender or servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also known as Reserves.

The sum of all monthly housing Mortgage expenses such as principal, interest, taxes and insurance (PITI), Homeowners dues, private mortgage insurance and any special assessments as a percentage of gross qualifying income.

The U.S. government agency that administers FHA, GNMA and other housing programs.

The fees imposed by a condominium or homeowners’ association for maintenance of common areas.