HUD-1 Settlement Statement
A document that provides an itemized listing of the funds that were paid at closing. Items that appear on the statement include real estate commissions, loan fees, points and initial escrow (impound) amounts. Each type of expense goes on a specific numbered line on the sheet. The totals at the bottom of the HUD-1 statement define the seller's net proceeds and they buyers payment at closing. It is called HUD1 because the form is printed by the Department of Housing and Development (HUD). The HUD1 statement is also known as the "closing statement" or "settlement sheet".

No-Cost Loan Many lenders offer what is known as a "no cost" loan. You should inquire whether this means there are no lender costs associated with the loan, or if it also covers the other cost you would normally have in a purchase or refinance transaction, such as title insurance, escrow fees, settlement fees, appraisal, recording fees, notary fees, and others. These are fees and costs which may be associated with buying a home or obtaining a loan, but not charged directly by the lender. Keep in mind that a "no-point" loan will have a higher interest rate to absorb those costs.

Note Rate The interest rate stated on a mortgage note

Mortgage Insurance premium (MIP) The amount paid by the Mortgagor (borrower) for mortgage insurance, either to a government agency such as the Federal housing Administration (FHA) or to a private mortgage insurance (MI) company.

Loan-to-Value The percentage relationship between the amount of the loan and the appraised value of the property. In a purchase transaction, that figure is between the loan amount and the sales price of the property.

Lock-In An agreement in which the lender guarantees a specified interest rate for a certain time period for a certain cost.

Annual percentage rate (APR) The cost of a mortgage stated as a yearly rate; includes items such as interest, mortgage insurance, and loan origination fee (points)