A
Adjustable Rate Mortgage (ARM)
A mortgage in which the interest rate on your loan adjusts according to a pre-selected index.

Amortization Schedule
A timetable for repayment of your mortgage that details the amount of each payment that is interest and the amount that is principal, which decreases the remaining balance.

Assessment
A levy or lien against a property for the purpose of taxation.

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C
Closing
The closing marks the end of a real estate transaction and includes the delivery of a deed, financial adjustments, the signing of notes, the disbursement of funds, and the cessation of escrow.

Closing Costs
Money due from the borrower related to the closing of a mortgage loan such as an origination fee, discount points, appraisal, credit report, title insurance, attorney’s fees, survey, and pre-paid items such as tax and insurance escrow payments.

Contingency
A condition that must be met before a contract is legally binding.

Convertible ARM
An adjustable-rate mortgage that can be converted to a fixed-rate mortgage.

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D
Down Payment
Out-of-pocket monies required to bridge the gap between the purchase price and the loan.

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E
Easement
Rights given to a third party for usage of a given property.

Elevation
The exterior face of a home, including building materials, architectural styles, colors, and textures.

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F
Floorplan
An in-depth sketch or drawing laying out a home and its environs including room size and shape, various stories, garage placement, and options.

Framing
The basic structure or framework of a house.

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H
HOA (Homeowners Association)
An association of homeowners responsible for enforcing the rules and regulations of a community and maintaining its common areas.

Homesite (or lot)
Each new community is divided into individual area parcels upon which a home will sit.

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L
Lot Premium
An extra fee charged for a lot more desirable than the others in the community.

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M
Master Plan Community
A large community, usually including multiple amenities, commercial areas, and homes built by several different builders, created to form a community rather than simply a group of homes.

Mello-Roos
A tax or charge imposed upon property owners in certain new California communities to help cover costs for developing and maintaining infrastructure such as sidewalks, sewage, landscaping, etc. that is included on your tax bill.

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O
Option
An item in a home that is not a standard feature, but can easily be added to the floorplan based on personal preference.

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P
Phase
A group of homesites within a community.

Punch List
A list of things that need to be fixed, repaired, or replaced prior to closing.

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R
Reservation
A non-binding agreement to purchase a home at a future date.

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S
Standard Feature
An item that is automatically included on your new home at no extra charge.

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U
Upgrade
An opportunity to pick a higher level of material or style in your home at an additional cost.

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W
Walk-through
A buyer’s final inspection of a newly built home prior to moving-in.

Warranty
A plan to fix or repair specific items of your home for a defined number of years.

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