Negative Amortization An increase in the outstanding balance of a loan when a monthly payment is not large enough to cover all of the interest due.

Note A formal document showing the existence of a debt and stating the terms of repayment.

PITI Principal, interest, taxes, and insurance (the 4 major components of monthly housing payments).

Point A charge of 1 percent of the mortgage amount. Points are a one-time charge assessed by the lender at closing to increase the interest yield on a mortgage loan.

Prepayment Payment of all or part of a debt prior to its maturity.

Principal The amount borrowed in a loan, excluding interest and other charges.

Property Survey A survey to determine the boundaries of your property. The cost will depend on the complexity of the survey.

Rapid Payoff Mortgage (See Growing Equity Mortgage).

Recording Fee A charge for recording the transfer of a property, paid to a city, county, or other appropriate branch of government.

Real Estate Settlement Procedures Act (RESPA) A federal law requiring lenders to provide home buyers with information about known or estimated settlement costs. The act also regulates other aspects of settlement procedures.

R-Value The resistance of insulation material (including windows) to heat passing through it. The higher the number, the greater the insulating value.

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