Washington State Department of Financial Institutions

Glossary of Terms

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Hold - a restriction on all or part of a members' balance, usually placed by a teller until a cashed or deposited check has cleared.

Home Equity - The difference between what you paid for your home and what you get when you sell.

Home Equity Loan - Describes any mortgage loan that is not used to finance the purchase of the home. Can be used to turn credit card debt, which is unsecured, into debt secured by the borrower's home. Depending on the terms of the borrower's contract, the borrower's home is in jeopardy if the borrower fails to make payments.

Home Inspection - A professional inspection of a home to review the condition of the property. The inspection should include an evaluation of the plumbing, heating and cooling systems, roof, wiring, and foundation and pest infestation.

Home Ownership and Equity Protection Act (HOEPA) - a law that requires additional disclosures for certain types of loans.

Home Warranty - offers protection for mechanical systems and attached appliances against unexpected repairs not covered by homeowner's insurance; overage extends over a specific time period and does not cover the home's structure.

Homebuyer Education Learning Program (HELP) - An educational program from the FHA that counsels people about the home buying process; HELP covers topics like budgeting, finding a home, getting a loan, and home maintenance; in most cases, completion of the program may entitle the homebuyer to a reduced initial FHA mortgage insurance premium-from 2.25% to 1.75% of the home purchase price.

Homeowner's Insurance - An insurance policy that combines protection against damage to a dwelling and it's contents with protection against claims of negligence or inappropriate action that result in someone's injury or property damage.

Housing Counseling Agency - Provides counseling and assistance to individuals on a variety of issues, including loan default, fair housing, and home buying.

Housing Expense Ratio - The percentage of your gross monthly income that goes toward paying for your housing expenses.

HUD - The U.S. Department of Housing and Urban Development; enforcing fair housing laws.

HUD-1 Settlement Statement - Also known as the "settlement sheet," which itemizes all closing costs and must be given to the borrower at or before closing. It provides the sales price, and down payment, as well as the total settlement costs required from the buyer and seller.

HVAC - Heating, Ventilation and Air Conditioning; a home's heating and cooling system.