Real Estate Terminology: Glossary For You: Mortgages H through J

And now for mortgage terms begining with the letters H, I and J... By the way, these lists of terms are not intended to be comprehensive, in so far as we do not expect to cover every single term ever used... but if you find a term and would like a definition, please feel free to ask...

H, I & J, here we go.

Home Equity Line of Credit -- A loan providing you with the ability to borrow funds at the time and in the amount you choose, up to a maximum credit limit for which you have qualified. Repayment is secured by the equity in your home. Simple interest (interest-only payments on the outstanding balance) is usually tax-deductible. Often used for home improvements, major purchases or expenses, and debt consolidation.

Home Equity Loan -- A fixed or adjustable rate loan obtained for a variety of purposes, secured by the equity in your home. Interest paid is usually tax -deductible. Often used for home improvement or freeing of equity for investment in other real estate or investment. Recommended by many to replace or substitute for consumer loans whose interest is not tax-deductible, such as auto or boat loans, credit card debt, medical debt, and education loans.

Hazard Insurance -- A contract between purchaser and an insurer, to compensate the insured for loss of property due to hazards (fire, hail damage, etc.), for a premium.

HUD I Settlement Statement -- A form utilized at loan closing to itemize the costs associated with purchasing the home. Used universally by mandate of HUD, the Department of Housing and Urban Development. More...

Index -- In mortgage terminology, this is a number, usually a percentage, upon which future interest rates for adjustable rate mortgages are based. Common indexes include the Cost of Funds for the Eleventh Federal District of banks or the average rate of a one year Government Treasury Security.

Interest Rate -- The periodic charge, expressed as a percentage, for use of credit.

Jumbo Loan -- Mortgage loans over 3,150. Terms and underwriting requirements may vary from conforming loans.