Appraisal: An opinion of value based upon a factual analysis. Legally, an estimation of value by two disinterested persons of suitable qualifications.

Closing Fees: Expenses incidental to a sale of real estate, such as loan fees, title fees, appraisal fees, origination fees, etc.

Equity: Net ownership, the difference between fair market value and current indebtedness.

Escrow: An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition.

Loan to Value Ratio (LTV): The ratio, expressed as a percentage, of the amount of a loan to the value or selling price of real property.

Lock-In Period: A period of time during which a lender guarantees the borrower a specific interest rate on a mortgage loan.

Origination Fee: A fee made by a lender for making a real estate loan. (Typically one percent of the amount loaned.)

Point: One percent of the loan amount.

Private Mortgage Insurance (PMI): Insurance against a loss by a lender in the event of default by a borrower. (Required for most mortgage loans greater than 80% LTV.)