For your convenience we have included explanations to a number of commonly confused real estate terms. Can't find an explanation or a term here? We have a 98 page glossary available by request on CD for our clients!

Indexed Rate
The sum of the published index plus a margin. For example if the index were 5% and the margin 2.75%, the "fully indexed rate" would be 7.75%.

Interest Only Loan
The borrower pays only the interest that accrues on the loan balance each month. Because each payment goes toward interest, the outstanding balance of the loan does not decline with each payment.

Certificate of Occupancy (CO)
A document stating that a home or other building has met all building codes and is suitable for habitation.

Tax Service Fee
A fee collected to set up third-party monitoring of the borrower's property tax payments. This is done to ensure that the payments are made on time and to prevent tax liens from occurring to the detriment of the lender.

Settlement or Closing Fees
Fees paid to the escrow agent (often a title insurance company) for carrying out the written instructions of the agreement between buyer and seller and/or borrower and lender.

Tenancy in Common
A form of ownership in which two or more owners hold an undivided (though not necessarily equal) interest in the property, with no right of survivorship.