 Glossary of Terms Homebuyers Should Know: Building a home, or moving into an existing home |
 Glossary of terms homebuyers should know: Buying and Financing a home |
| Glossary
of Terms Homebuyers Should Know: Building a home, or moving into an existing home |
| A B C D E F G H J K L M O P R S T U V W Z |
Amperage - The rate of flow of electricity through wire, measured in terms of amperes.
Backfill
-
The slope of the ground adjacent to the house. "Backfilling"
is also covering the foundation
walls with dirt.
Ball Cock Valve - The valve inside the toilet tank that controls the refilling of the tank.
Beam - A main supporting member either of wood or steel for a ceiling or floor.
Bridging
- Short, structural members criss - crossed between beams to provide reinforcement
and
distribution of stress.
BTU
- A measure of the capacity of a heating or cooling system. Abbreviation
of British Thermal Unit.
The higher the number of Btu's the more powerful
the system.
BX Cable - Armored electrical cable wrapped in galvanized steel outer covering.
Caulking - Material used to seal exterior cracks and openings such as windows or foundations.
Circuit
Breakers
- A protective device which automatically opens (trips) an electrical
circuit when it is overloaded. Circuit breakers are superior versions
of fuses, which must be replaced when they "blow" from
being
overloaded.
Condensation
- Water condensing on wails, ceiling and pipes. Normal in areas of high
humidity,
usually controlled be ventilation or a dehumidifier.
Conduit - A hollow pipe casing through which electric lines run .
Downspout - The pipe that carries water down from the gutter or scupper. Also called a leader.
Easement
- A right given to a third party to use a portion of property for certain
purposes, such as
power lines or water mains.
Eave - The part of the roof which extends beyond the side wall.
Efflorescence - A white powder on the surface of walls due to evaporation of water.
Elevation - The exterior face of a home, including the materials (like brick or stone) used on that face.
Energy
Efficiency Ratio
- An air conditioning efficiency rating system which indicates the number
of
BTU'S delivered per watt of power consumed
Framing - The construction of the skeleton structure, or framework, of a house.
Floorplan
- An architectural drawing showing the overall layout of a home. The size
and shape of each
room, as well as any optional configurations of those
rooms, are shown on the floorplan.
Fascia
- A flat, horizontal board enclosing the overhang under the eave. Gutters
usually cover or are
attached to the fascia board.
Flashing
- Material, often copper or tin, used around any angle in a roof or wall
to prevent leakage
where unlike materials come together, for example,
where a chimney meets shingles.
Flue - A pipe used to exhaust smoke, gas or air, including a fireplace
Flush Valve
- The valve separating the water in the tank from the bowl. A worn or
misaligned
flush valve will cause the toilet to "run" or cycle.
Footing - The underground support, usually poured concrete, used for a foundation or support post.
Foundation - The lowest part of a wall or series of piers on which a structure is built, usually of concrete.
Galvanized Pipe - Iron pipe with a zinc coating. Formerly used for water lines.
GFI - Ground Fault Interrupter. A type of safety circuit breaker now required in areas containing water lines, including kitchens and bathrooms. It is designed to trip (go off) to prevent shock or electrocution.
Girder - A main supporting beam of the house.
Grade - The ground level around a building.
Grouting - Material used around ceramic tile as filler.
Gutter - A trough used at the edge of a roof to collect rain.
Header - Wooden support above door or window opening.
Hearth - The lowest portion of a fireplace, typically made of stone or other fireproof material.
Home Inspection
- A limited time, non - technical visual evaluation of the readily accessible
areas,
for the sole purpose of identifying major deficiencies.
Home Inspector
- An individual who has a broad general background and understanding relating
to
basic house construction, common house problems and methods for their
correction. The individual may
or may not be liable for overlooked problems.
HOA (Homeowners
Association) -
The Homeowners Association is responsible for enforcing the
rules and
regulations of the community, and also for the maintenance and upkeep
of any common areas, including community centers, swimming pools, health
club facilities, and landscaping. A monthly fee is
paid by all homeowners
in the community to pay for the activities of the HOA. This fee varies
from
community to community, and can be from $30 to over $200 per month,
depending on the extent of
the community’s common areas.
Homesite - See Lot, below.
Jamb - The side of the door frame facing the opening.
Joists - parallel, horizontal beams laid edgewise from wall-to-wall to support the boards of a floor or ceiling.
Knob and Tube - An old form of wiring.
Lally Column - A round steel cylinder usually filled with concrete to support overhead beams.
Lot Premium
- A charge paid by the buyer of a special lot that is either larger or
in a more desirable
location than the other homesites in the community.
Lot - Each new community is divided into individual lots, or homesites.
Lumens - The measure of brightness of a light bulb or fixture.
Major
Deficiency
- A deficiency is considered major if it severely affects the habitability
of the
dwelling, or in the opinion of an inspector, may cost more than
$20,000 to repair.
Octopus Receptacle - An overcrowded outlet.
Old Termite Activity - Evidence of former activity but none current
Open Splice - An unboxed electrical connection.
Option - An item available in a home that is not a standard feature. See upgrade
Parging - A coat of cement over block foundation wails.
Phase
- A group of lots within a community as Phase 1, Phase 2, etc. Most homebuilders
sell all the lots
within the current phase before moving on to the next
phase of the community. The benefit to the homebuyer is that construction
activity is focused in one small area at a time.
Point Up (Repointing/Tuckpointing) - To fill the joints between the brick. Brickwork that needs tuckpointing may leak water and air.
Plan - See Floorplan.
Punch List
- A written list of items which need to be fixed, repaired or replaced
prior to the final
walk through, typically at no additional cost.
Rafter - A sloping rib member of a roof .
Recaulk - Fill in the cracks, usually also removing old or brittle caulk in the process.
Receptacle - An electrical outlet for a plug.
Register
- An controllable opening through which hot or cold air enters a room,
as driven by the
furnace or air conditioner.
Ridge Board - The horizontal structural member at the top of a roof where the rafters meet.
Ridge Vent:
- An opening that may run the length of the roof ridge that allows an
attic to breath so
moisture or heat do not collect.
Roof Pitch - The degree of a roof's slope. The lesser the pitch, the flatter the roof.
Scuttle - An opening to an attic.
Sheathing - The covering on roofs or walls (plywood or other material) below the exterior roof .
Sheetrock - Also called plasterboard or drywall.
Sill Plate - Framing lumber placed on and around the foundation to support the exterior wall studs.
Sill Cock - The exterior water connection you attach a garden hose to.
Soffit - The underside of a cornice at the eaves.
Standard Feature - A specific item that is automatically included when you purchase a new home. Standard features may include a specific style of cabinets, or a specific type of countertops.
Stucco - An exterior plaster wall surface.
Stud - A vertical, framing member in a wall or partition, often a 2 x 4, usually spaced every 18 inches
Sump - A pit in the basement floor into which water drains to be pumped out with a sump pump.
Swale - A wide, depression in the ground where water may collect or flow.
Trap
- A bend in a water pipe to hold water and prevent gases from escaping
into the house. There
are "S", "P", and "J"
traps, among others.
Unvented
range hood
- A hood over the oven or stovetop that is not vented to the outside but
recycles
air back into the room after it travels through a filter.
Unvented fireplace - A gas or propane fireplace that does not require a vent to the outside
Upgrade
- Often, a homebuyer can choose to upgrade to a higher-level of material
or style in several areas of their home (e.g., granite countertops instead
of formica; or hardwood floors instead of carpet; better cabinetry
or
higher quality plumbing and lighting fixtures.
Vent Pipe - A pipe allowing gas to escape from plumbing stacks so that water will flow correctly.
Voltage - The pressure behind the flow of electricity, measured in terms of volts.
Walk-through - A buyer’s final inspection of a newly-built home prior to move-in.
Warranty
- A promise to fix or repair any damage to specific items of your home,
under specific terms,
costs and circumstance.
Wattage
- The amount of electricity flowing through a line, measured in terms
of watts. It is not a measure
of the brightness of a lightbulb. "Lumens"
measure brightness.
Weatherstripping
- Material used around door and window openings to prevent rain, wind,
and cold
from entering the house.
Weep Hole - Drain hole to allow moisture to escape. Storm windows may have weep holes to allow condensation to drain.
Zero
clearance fireplace
- A self-contained gas/propane fireplace designed for use close to other
furniture or walls.
| Glossary
of terms homebuyers should know: Buying and Financing a home |
| A B C D E F G H I L M O P R T V |
Adjustable-Rate Mortgage (ARM): A mortgage in which the interest rate (and monthly payment) fluctuate up (or down) during the life of the loan. Depending on the terms, the interest rate may change every six or twelve months. Because the initial interest rate is often lower for an adjustable-rate loan, the monthly payments during the first few years may be lower t han a fixed-rate loan. A good option for buyers who do not expect to stay in the home for more than few years, or think interest rates will go down. Can be expensive if rates rise suddenly or dramatically.
APR (Annual Percentage Rate): The true, total cost of the mortgage expressed as a percentage of the loan amount. Unlike the base interest rate (which only includes interest), the APR includes all costs associated with your loan, including points, origination fees, etc. Because different lenders charge different fees, the APR is a good way to compare the total cost of a loan from various lenders.
Bridge Loan: A loan taken by a homebuyer who already owns a house to cover the cost of the down payment until their home sells. Proceeds from the sale of the old home pay off the bridge loan.
Buy-down: A mortgage subsidy that is sometimes offered by a homebuilder to help buyers afford the property. The builder pays a portion of the interest payment for a few months (or a few years), This lowers the initial monthly payment for the buyer.
Close of Escrow: The end of the Escrow Period, or the date that a homebuyer takes possession of their new home and the Escrow Company makes all final payments to the builder.
Closing Costs: All upfront fees and charges related to the home purchase, excluding the down payment. Closing costs may include points or other origination fees, any pre-paid interest, pro-rated property taxes (if any), etc. For most loans, the closing costs are paid by the buyer at the close of escrow.
Deed of Trust: The document that pledges the subject property as collateral for the repayment of the loan.
Deposit/Earnest
Money:
Money paid by the buyer in "good faith" to assure performance
of contract.
Usually refundable, but may not be under certain circumstances.
Down Payment: The portion of the purchase price which a buyer pays before moving in. Often, the down payment is expressed as a percentage of the total purchase price, typically between 3% and 20%.
Equity: The portion of a home’s total current value that is "owned" by the homeowner. The difference between what your home would sell for and how much you still owe on it is your equity. 80-90% of this amount is often available to you through a home equity loan or second mortgage.
Escrow: Money paid to a neutral third party for payment to other parties on a pre-determined schedule, such as for insurance, taxes, or a home purchase.
Escrow
Account:
Depending on the type of the loan, some lenders increase the size of the
monthly payment
to cover important bills such a property taxes and insurance.
This extra amount is deposited into an interest-earning Escrow Account.
At the end of the year, when the taxes or insurance premiums are due,
the lender automatically pays the bill from the buyer’s account.
Escrow
Period:
The period between the time you sign a purchase contract and you actually
take possession
of the home. During this period, a buyer deposits a series
of payments to a neutral third party (called the Escrow Company), covering
the down payment and closing costs. Depending on circumstances, this
process
typically takes from one week to 45 days.
FHA Mortgage: A mortgage insured by the Federal Housing Administration which offers low rate, low down payment mortgages to buyers (terms vary county by county).
Fixed-Rate
Mortgage:
A mortgage in which the interest rate (and the monthly payment) remain
the same
for the entire life of the loan 30-year and 15-year fixed rate
mortgages are industry standards.
Good-Faith Estimate: A line by line estimate from a lender of total closing costs.
Homeowner’s
Insurance:
Insurance including hazard coverage that insures for damages that
may
affect the value of a house, in addition to personal liability and theft
coverage.
Interest: The cost of money. This is the amount added onto the principle of your loan. The "interest payment" is the portion of your monthly payment that is applied against the interest owed. For most people, a portion of their annual mortgage interest payment is tax-deductible.
Interest
Rate:
The cost of borrowing, expressed as an annual percentage of the principal.
Many factors influence the interest rate you will be charged, including
the overall state of the economy, the cost the lender
is charged to borrow
the funds, etc.
Loan-to-Value
(LTV) Ratio:
The ratio of the amount of money owed on a home to the home’s value.
The difference between these two figures initially is the down payment.
Mortgage: A loan used for the purchase of a new home. Mortgages are available from banks, savings & loans, credit unions, mortgage companies, etc. A second mortgage is a loan against the homeowner's equity.
Mortgage Analysis: A calculation of how much home you can afford, based on your income, your current credit obligations, etc
PITI (Principal, Interest, Taxes and Insurance): The four amounts that make up your monthly house payment. Principal and interest (P&I) are due on every loan. Taxes and insurance (T&I) are also included if the lender requires an escrow account.
PMI (Private Mortgage Insurance): Insurance purchased by the lender but paid for by the homebuyer. It protects the lender in case a buyer cannot make their loan payments.. Buyers can avoid a PMI payment if their down payment is large enough (typically 20% of the home price).
Points: An upfront fee charged by a lender to process a mortgage. Each point represents 1% of the loan amount. So a $120,000 loan "with one point" means a fee of $1,200. Points cannot be added to the amount of the loan.
Pre-Qualification: Another name for a Mortgage Analysis.
Principal: The amount of your loan without interest added. The "principal payment" is the portion of your monthly payment that is applied against the principal.
Reservation: A non-binding agreement to purchase a home at a future date. Often, a reservation is taken for a specific lot in an upcoming phase, giving the buyer the first opportunity to purchase that lot when the phase is released. A reservation usually requires a deposit.
Title Company: Firm that ensures that the title, or actual legal document of ownership, on a property is clear and provides title insurance.
VA Loan: VA loans are available to active members of the armed forces, as well as to veterans and unremarried surviving widows of veterans. VA loans are backed by the Veterans Administration, which offers several benefits to buyers:
Variable Interest Rate Loan: Another name for an Adjustable Rate Mortgage (ARM)