Amortization Schedule: A schedule showing the principle and interest payments throughout the life of the loan.

Appraised Value: An opinion of the value of a property at a given time, based on facts regarding the location, improvements, etc. of the property and surroundings.

Assumption Transfer Fee: A fee assessed by the lender to buyer to assume an existing loan.

Credit Report: A report on the past ability of a loan applicant to pay installment payments.

Document Preparation Fee: A charge by an attorney for preparing legal documents for a transaction.

Escrow Fee: A fee charged by the title company to service the transaction. The amount varies with company, and is usually split between buyer and seller.

Escrow/Impound Account: Funds held by the lender for payment of taxes and insurance when due. Usually does not include maintenance fees.

Homeowner’s Insurance: Protects the property and contents in case of damage or loss; must be for at least the loan amount or for 80% of the value of improvements, whichever is greater.

Inspections: An examination of property for various reasons such as termite inspections; inspection to see if required repairs were made before funds are received, etc.

Interest: Cost of loan funds; always paid in arrears.

Loan Application Fee: Paid to the lender at time of application; check with lender for amount.

Loan Discount: The points a lender charges; may be paid by either buyer or seller on conventional loans; number of points fluctuates with mortgage money market.

Maintenance Fee: Charged by the homeowner’s association as set out in subdivision restrictions.

Mortgagee’s Title Policy: Required by the lender to insure that the lender has a valid lien; does not protect the buyer.

Origination Fee: A fee the buyer pays the lender to originate a new loan.

Owner Title Policy: Insures the buyer has title to the property.

Point: 1% of loan amount.

Prepayment Penalty: Charged by the lender for premature payment of a loan balance.

Private Mortgage Insurance (PMI): Insurance against loss by lender(mortgagee) in the event of default by borrower(mortgagor).

Realtor Fees: An amount paid to the REALTOR as compensation for his services.

Recording Fees: Charged by the County Clerk to record documents in the public records.

Restrictions: Certified copy of deed restrictions required by lender.

Survey: Confirms lot size and identifies any encroachments or restriction violations.

Tax Proration: Seller pays buyer’s taxes from January 1 to closing.

Tax Certificates: Certificates issued by taxing authorities showing the current year’s taxes, the last year the taxes were paid, and any delinquencies to be collected at closing.