A contract between purchaser and an insurer, to compensate the insured
for loss of property due to hazards (fire, hail damage, etc.), for a
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.
Housing Expenses-to-Income Ratio
The ratio, expressed as a percentage, which results when a
borrower's housing expenses are divided by his/her gross monthly
income. See debt-to-income ratio.
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.