Glossary

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H

 

High Risk Lender
Anytime a traditional lender, also known as a conforming lender, will not approve mortgage requests. High risk lenders understand the real estate market, real estate loans and mortgages and are looking for a safe and secure investment. Since these types of mortgages are secured by a property with at least 10-30% equity, the lender is better protected and receives the benefit of the higher interest rate return, as the interest rate you will pay will be higher.

 

Home Improvement Loans
The definition of home improvement loans has changed to provide greater consistency among reporting institutions and, thus, to increase the usefulness of the data. The regulation currently permits lenders to report only those loans (secured or unsecured) where a portion of the proceeds will be used for home improvement and the lenders classify the loan as a home- improvement loan on their systems. Reporting systems differ from bank to bank, making comparison of home improvement lending data difficult between institutions.

 

Home Loan
a loan secured by equity value in the borrower's home. In a fixed rate mortgage the interest rate of the loan is fixed for the term of the loan which is usually 15 or 30 years.

Home Loans (house loans)
A loan secured by equity value in the borrower's home.

 

Home Mortgages
In a residential mortgage, a homebuyer pledges his or her house to the bank. The bank has a claim on the house should the homebuyer default on paying his or her mortgage. In the case of a foreclosure, the bank may evict the home's tenants and sell the house, using the income from the sale to clear the mortgage debt.

 

Home Rate
All home mortgages have an interest rate, a term, and an Annual Percentage Rate (APR). For example, a mortgage might be defined as a 30-Year Fixed Rate Loan at 7.625%, with an APR of 7.800%.

 

Home Refinancing
Refinancing is the refunding or restructuring of debt with new debt, equity, or a combination of both.