Common Real Estate Terms & Mortgage Terms Explained - Part 7

More definitions for commonly used real estate terms and mortgage terms:

Homeowner's Association
An owners group (within a condominium, apartment, townhouse or single family subdivision), that establishes general guidelines for the operation of the community, as well as its standards.

Inspection
A thorough inspection of a home (inside and out) being considered for purchase. The inspect will look for defects in the property.

Interest
That portion of a mortgage payment that is the "charge" for using the lender's funds.

Interest-Only Loan
Where each payment goes toward interest, the outstanding balance of the loan does not decline with each payment.

Interest Rate Caps
Where a limit is placed on the amount that can be charged to the monthly payment of an adjustable-rate mortgage during an adjustment period.