MORTGAGE TERMS DICTIONARY
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Hazard Insurance (Fire Insurance, Homeowner's insurance) |
| Insurance on a property against fire and other risks. A homeowner's policy may have additional coverage for theft, liability, etc. that a fire insurance policy may not cover. |
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Homeowners Association |
| An association of homeowners in a particular subdivision, planned unit development (PUD), or condominium organized to manage the common area of the development and to enforce the association rules and regulations. |
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Homestead |
| Status provided to a homeowner's principal residence in some states that protects the home against judgements up to specified amounts. |
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Homestead Exemption |
Available in some states - this causes the assessed value of a principal residence to be reduced by the amount of the exemption for the purposes of calculating property tax.
Example : John's principal residence is assessed at $100,000 and the homestead exemption is $7,000. His property taxes will be based on $93,000. |
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Home Warranty Plan |
| Insurance that covers appliances, heating systems, etc. Typically purchased at the time of closing. |
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Housing Code |
| A local government ordinance that sets minimum standards of safety and sanitation for existing residential buildings.
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HUD 1 |
| A closing document required by HUD that outlines the settlement cost of a loan. The closing agent prepares this document and sends it to the buyer upon closing. |
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Hypothecate |
| To pledge a property as security without having to give up possession of it. |
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