A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  XYZ

A

ABS - A type of black plastic pipe commonly used for waste water lines.

Acceptance - Agreement to a contract.

Accrued interest - Interest owed but not yet paid.

Acre - A measure of land equal to 43,560 square feet.

Adjustable rate mortgage loans (ARM) - Loans with interest rates that are adjusted periodically based on changes in a preselected index.

Adjusted basis - The original cost of a property plus the cost of any improvements such as an addition.

Aggregate - Gravel or pebbles that are added to concrete and sometimes left exposed on the surface of the concrete for decoration.

Air duct - Pipes that carry warm or cold air in to rooms and back to the furnace or air conditioning system. Part of the HVAC system (heating, ventilation, air conditioning).

Amortization - Payment of a loan with regular installments calculated to pay off the loan at the end of a fixed period of time.

Amperage or AMPS - A unit of electrical current or volume. Most homes have an electrical service that provides between of 100 and 300 amps.

Anchor bolts - Bolts that are set in the concrete foundation and used to attach the framing of the house to the foundation.

Annual percentage rate (APR) - A percentage that results from an equation considering the amount financed, the finance charges, and the term of the loan. It is not necessarily the loan's interest rate. APR was created to help consumers more easily compare loans.

Application - An initial statement of personal and financial information, which is required to approve your loan.

Application fee - Fee charged by a lender to cover the initial costs of processing a loan application.

Appraisal - An estimate of a property's current market value.

Appreciation - An increase in the value or worth of a property; opposite of depreciation.

APR - See annual percentage rate.

ARM - See adjustable rate mortgage loans.

Asbestos - Formerly a common building material because of its fire resistance. For more information see the EPA web site or look for asbestos removal firms in the phone book.

Asking price - The price placed on a property for sale. Also known as the list price.

Asphalt - A black waterproof material used for roofing and pavement.

Assessor - A local government official who determines the value of the property for taxation purposes.

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B

Backfill - Dirt or gravel used to fill in against a wall or foundation.

Backflow - A reverse flow of water into the water supply pipes, caused by negative pressure in the pipes.

Balloon mortgage - A mortgage that has regular payments for a period of time, typically 3 to 7 years, and a large single payment at the end of the period to pay off the entire balance.

Baseboard - A decorative board placed above the floor against walls and partitions to hide gaps.

Batt - Insulation in the form of a blanket, rather than loose filling. Commonly used for insulation in new construction of walls, floors, and ceilings.

Beam - A horizontal framing member designed to carry a load between two walls or other supports.

Bearing wall - A wall that supports the ceiling, roof, or second story.

Bill of sale - A written document given to pass the title of a property between people.

Blue prints - A method of copying architectural drawings. Can also refer to the drawings themselves.

Board and batten - A style of exterior siding where seams between wide vertical boards are covered by narrow vertical boards.

Bona fide - In good faith.

Brokerage - A company that brings together, for a commission or fee, parties interested in buying, selling, exchanging, or leasing real property.

Building paper - Heavy paper used on exterior walls and under tile in showers to protect the framing from water and moisture.

Bump out - A small addition that does not necessarily have a foundation because it is cantilevered or suspended.

Buy-down - A payment to a lender to reduce the interest rate of a loan.

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C

Cantilever - Any part of a structure that projects beyond its main support and is balanced on it.

Capital gains - The profit on the sale of a capital asset, such as stock or real estate. If you sell your primary residence, you can exclude $250,000 in profit from capital gains tax. A couple can exclude $500,000.

Casement window - A window with hinges on one of the sides that swings open like a door.

Cash-out - Cash given to you when you get a new loan that is larger than the remaining balance of your current mortgage.

Casing - Door and window framing.

Cast-iron pipe - Heavy metal pipe used for plumbing drain and vents. Most new construction will use ABS plastic instead.

Caulking - A flexible material used to seal a gap between two surfaces. Frequently used around windows, between a bathtub and tile, and to fill gaps in exterior siding.

CC&Rs See covenants, conditions and restrictions.

Ceiling (financial) - The maximum allowable interest rate of an adjustable rate mortgage.

Chair rail - Molding on a wall at the height of a chair back.

Change order - A document that modifies the terms, specifications or price of a Contract.

Circuit breaker - A switchlike device that allows a maximum of current (amperes) into the wiring of a home. Above that current it will break or disconnect the wiring from the electrical service. The device can be reset by moving the switch level back to the original position.

Cistern - A tank to catch and store rainwater.

Clear title - A land title that doesn't have any liens (including a mortgage) against it.

Closing - The conclusion of your real estate transaction; includes the delivery of the property title, signing of your legal documents, and the distribution of the funds necessary for the sale of your home.

Closing - The conclusion of the sales transaction, when the seller transfers title to the buyer.

Closing costs - Costs for services performed before your loan can be initiated. Examples include title fees, recording fees, appraisal fee, credit report fee, pest inspection, attorney's fees, and surveying fees.

Closing statement - A detailed written summary of the financial settlement of a real estate transaction, showing all charges and credits made and all cash received and paid out.

Code - Rules created and enforced by governments and trade organizations to set required building design and construction requirements.

COFI - See Cost-of-funds index.

Commission - Money paid to a real estate agent or broker for negotiating a real estate or loan transaction.

Comparables - Properties that are similar to a particular property used to compare and establish a value for that property.

Concrete block - A hollow concrete brick, often 8 inch x 8 inch x 16 inch in size, that is used to build walls.

Concrete board - A panel made out of concrete and fiberglass used as a tile backing material.

Conforming loan - A mortgage loan that meets all requirements to be eligible for purchase by federal agencies.

Contingency - A requirement in a contract stating that some or all of the terms of the contract will be void unless certain specified requirements are met.

Contractor - A company licensed by the state or other government to perform construction and remodeling projects. There are various types of contractors: General contractor-A contractor that takes responsibility to organize and coordinate all the trades people necessary to complete a remodeling project. Subcontractor-A contractor who works for a general contractor.

Convertible ARMs - A type of ARM loan with the option to convert to a fixed-rate loan during a given time period. Conveyance The document used to effect a transfer, such as a deed, or mortgage.

Cost-of-funds index (COFI) - An index of the weighted-average interest rate paid by savings institutions for sources of funds, usually by members of the 11th Federal Home Loan Bank District.

Covenants, conditions and restrictions (CC&Rs) - The restrictions governing the use of real estate, usually enforced by a homeowners' association and passed on to the new owners of a property.

Crawl space - A shallow, unfinished space beneath the first floor of a house that has no basement.

Credit insurance - Insurance that will pay off a loan if a borrower dies or becomes disabled or in case of other events that are covered by the policy.

Credit limit - The maximum amount that you can borrow under a home equity plan. Credit report A summary of your loan activity and payment history; used to determine if you are safe to lend money to.

Credit Score - A calculation that provides a single number indicating your credit worthiness. It is a single number that summarizes your credit report.

Creditor - A person or bank to whom a debt is owed.

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D

Debt-to-Income ratio -The measurement of debt payments to gross household income used to determine how much can be lent to a borrower.

Deed - A legal document by which title to real property is transferred from one owner to another.

Default - Failure of one or both parties to meet legal obligations in a contract. Delinquency Failure to make payments as agreed.

Depreciation - A loss in value of an asset, such as a home or a car.

Disclosure - The making known of a fact that may not be obvious about a home that is for sale.

Discount points - A fee paid to lender at the time that you get your loan to reduce the interest rate or otherwise change the terms of the loan. Also called points.

Dormer - A projecting section of framing from a sloping roof, usually containing a window or vent.

Double-hung window - A window with two vertically sliding sections; very common in older homes and new homes of certain styles.

Dry rot - A fungus that slowly destroys wood.

Drywall or Sheetrock - The most common material used to finish interior walls. Sheets are screwed or nailed to framing, dents and depressions are filled, and a texture applied.

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E

Earthquake strap - A metal strap used to secure gas hot water heaters to the framing or foundation of a house.

Easement - An agreement that allows a party to use a portion of your property for a specific purpose.

Equity - The difference between the current market value of a home and the total mortgage owed on the same home.

Escrow - A transaction in which a third party acts as the agent for seller and buyer or for borrower and lender in handling legal documents and disbursement of funds.

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F

Fannie Mae - A company created by the U.S. government to buy home loans from mortgage companies, allowing more loans to be made.

FHA - The Federal Housing Administration, which insures mortgage loans made by approved lenders in accordance with FHA regulations.

First mortgage - A mortgage that will be paid first from proceeds from the sale of the home if a homeowner defaults on payments.

Fixed rate - An interest that doesn't change for the term of the loan.

Fixed-price contract - A contract with a set price for the work.

Footing - A widened base of a foundation wall or a concrete poured foundation.

Framing - The structural wood and/or metal elements of most homes.

FSBO - A home that is for sale by owner; being sold without a real estate agent.

Fuse - A device found in older homes designed to prevent overloads in electrical lines.

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G

GFI or GFCI - See ground fault current interrupter.

Good-faith estimate - Written estimate of the settlement costs the borrower will likely have to pay at closing.

Grace period - The period of time during which a loan payment may be made after its due date without incurring a late penalty.

Gross income - Your total income before taxes or expenses are deducted.

Ground fault current interrupter - An electrical device built into normal electrical outlets that can prevent injury from contact with electrical appliances. Required in new homes in bathrooms, kitchens, garages and outdoors.

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H

Hardwood - A very durable type of wood from broad-leaved trees, such as oak or maple, commonly used for floors and furniture.

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I

Impound account - An account held by a lender to which the borrower pays monthly installments, collected as part of the monthly mortgage payment, for annual expenses such as taxes and insurance. The lender disburses impound account funds on behalf of the borrower when the expenses are due.

Interest - The charge paid for borrowing money, calculated as a percentage of the remaining balance of the amount borrowed.

Interest rate The annual rate of interest on the loan, expressed as a percentage of 100.

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J

Jamb - An exposed frame that retains a window or door.

Joists - A type of framing that makes up floors and ceilings.

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L

Lath - One of a number of thin narrow strips of wood nailed to rafters, ceiling joists, wall studs, and so on to make a groundwork or key for slates, tiles, or plastering.

Lien - A legal claim by one person on the property of another for security for payment of a debt.

Load-bearing wall - A wall that is supporting other parts of a home such as the roof or a second story.

Loan origination fee - A Fee charged by a lender to cover the administrative costs of processing a loan.

Loan-to-value ratio (LTV) - The percentage of the loan amount compared to the appraised value (or the sales price, whichever is less) of the property.

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M

Market value - The price that a buyer can buy a home from a seller.

Moisture barrier - Treated paper or metal that prevents water or water vapor from coming in contact with the protected material.

Molding - A strip of decorative material having a plain or curved narrow surface. These strips are often used to hide gaps at wall junctures.

Mortgage - A legal document by which real property is pledged as security for the repayment of a loan.

Mortgage insurance - Insurance to protect the lender in case you default on your loan. Also called private mortgage insurance. (PMI)

Multiple Listing Service (MLS) - A directory where member real estate agents can advertise the homes that they have listed.

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N

Negative amortization - A loan payment schedule that causes the principal balance of a loan to increase instead of decrease.

Note - A legal document obligating a borrower to repay a loan at a stated interest rate during a specified period of time.

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O

Open listing - A listing under which the principal (owner) reserves the right to list his property with other brokers.

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P

Per diem interest - Interest calculated per day.

Permit - Authorization from a government organization to remodel.

Pier block - A concrete block used to support foundation members such as posts, beams, girders, and joists.

Pitch - The angle of the slope of a roof as expressed as the ratio of the rise, in feet, to the span, in feet.

PITI - principal, interest, taxes and insurance-the components of a monthly mortgage payment.

Plywood - A sheet of wood manufactured by gluing several sheets together.

PMI - See private mortgage insurance.

Points (or discount points) - A fee paid to the lender at the time that you get your loan to reduce the interest rate or otherwise change the terms of the loan.

Power of attorney - A legal document authorizing one person to act on behalf of another.

Prefabrication - Construction of components such as walls, trusses, or doors, before delivery to a building site.

Prepayment Penalty - Fee charged by a lender for a loan paid off in advance of the contractual due date.

Prequalification - The process of determining how much money a prospective homebuyer will be eligible to borrow prior to applying for a loan.

Principal - The amount of debt, not counting interest, left on a loan.

Private mortgage insurance (PMI) - Insurance to protect the lender in case you default on your loan.

Prorate - To divide or distribute equally.

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R

Rent back - Staying for a few months in your home after you sell it by paying the new owners a monthly payment.

Resilient flooring - A durable floor such as vinyl or linoleum.

Right to rescission - Under the provisions of the Truth-in-Lending Act, the borrower's right, on certain kinds of loans, to cancel the loan within three days of signing a mortgage.

Roof sheathing Sheets, usually of plywood, nailed to the top edges of trusses or rafters to tie the roof together and support the roofing material.

Rough flooring - Materials used to form an unfinished floor. Also known as the subfloor.

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S

Sash - The movable part of a window; the frame in which panes of glass are set in a window or door.

Septic tank - A sewage-settling tank in which part of the sewage is converted into sludge before the remaining waste is discharged by gravity into the ground.

Setback - The distance a building must be set back from the property lines in accordance with local zoning ordinances or deed restrictions.

Shake - A wood shingle used for roofing.

Sheathing - Exterior-grade boards used as roof deck material.

Slab - A type of foundation with a concrete floor placed directly on the soil.

Soffit - The finished underside of the eaves.

Subfloor - Usually, plywood sheets that are nailed directly to the floor joists and that receive the finish flooring.

Sump - A pit in the basement in which water collects to be pumped out with a pump.

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T

Tear down - A house that will be removed substantially from a lot and a new one rebuilt in its place.

Time and material contract - An agreement with a contractor where they are paid an hourly rate and the cost of the materials they buy to complete the work.

Treated lumber - A wood product impregnated with chemicals to reduce damage from wood rot or insects. Often used for the portions of a structure that are likely to be in ongoing contact with soil and water.

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U

Underlayment - A layer of wood or other material designed to support a surface material; used under vinyl and other types of flooring as well as beneath shingles or other roofing material.

Underwriting - The process of verifying data and approving a loan.

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W

Wainscoting - The lining on the lower three or four feet of an interior wall, consisting of paneling different from the rest of the wall.

Wall sheathing - Sheets of plywood, gypsum board, or other material nailed to the outside face of studs as a base for exterior siding.

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Z

Zoning - The city or county regulations that control the use and character of property.

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For more information about remodeling or moving, please visit www.nichelending.com or contact us at remodelormove@nichelending.com or call toll free at (888) 491-2001

"About the Author -Dan Fritschen, founder of www.remodelormove.com, www.remodelestimates.com and author of the best selling books Remodel or Move? Make the Right Decision and The Complete Remodeling Workbook and Organizer (available at www.remodelingorganizer.com).

Do you have remodeling or moving questions? Email Dan directly at dan@remodelormove.com.