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A - D | E - H | I - L | M - P | Q - T | U - Z
Main water shut-off valve
The primary valve that halts the flow of water from the water meter into a home.
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Maintenance fee
The monthly assessment members of a homeowners' association pay for the repair and maintenance of common areas.
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Managed-competition lots
Lots in which buyers choose between one of several builders.
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Mansard roof
A roof with four sides that slope upward from the roof edge to the square peak.
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Mantel
The facing of stone, marble or other material around a fireplace.
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Manufactured housing
Prefabricated homes that can range from simple trailers to larger dwellings.
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Margin
The lender's
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Market conditions
Factors affecting the sale and purchase of homes at a particular point in time.
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Market value
The price that a piece of property sells for at a particular point in time.
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Masonry
The brick or stone work on a building.
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Master-planned community
A suburban plan that includes homes and commercial, work, educational and community facilities.
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Maximum financing
A loan amount within 5 percent of the highest loan-to-value ratio allowed for a property.
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Mechanical systems
A home's plumbing, wiring, heating and cooling systems.
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Mechanic's lien
Subcontractors or suppliers sometimes will file an encumbrance, or mechanic's lien, against a property to seek payment.
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Median price
The price of the house that falls in the middle of the total number of homes for sale in that area.
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Mediation
A dispute-resolution process in which a neutral party works to resolve contract differences.
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Merged credit report
A report that draws information from the Big Three credit-reporting companies: Equifax, Experian and TransUnion Corp.
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Metes and bounds
A time-honored land surveying method of describing land in terms of shape and boundary dimensions.
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Mint condition
Mint condition, or blue-ribbon condition, refers to a house that looks as close to new as possible.
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Mixed-income housing
A neighborhood that contains houses of widely varying prices.
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Mixed-use development
A project that combines several different functions, such as residential space above a commercial establishment or an entire development combining commercial, residential and public accommodations.
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Modification
A change in any of the terms of the loan agreement.
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Molding
Decorative trim elements applied to walls, ceilings, and window and door openings.
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Money market account
Accounts that work like money market funds and allow individual investors to participate in certain managed investments and withdraw funds under most conditions.
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Money market funds
A mutual fund that pools the resources of individuals to invest in certain managed investments.
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Mortgage
A legal document specifying a certain amount of money to purchase a home at a certain interest rate, and using the property as collateral.
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Mortgage acceleration clause
A clause which allows a lender to demand that the entire balance of the loan be repaid in a lump sum under certain circumstances. The acceleration clause is usually triggered if the home is sold, title to the property is changed, the loan is refinanced or the borrower defaults on a scheduled payment.
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Mortgage banker
A company that provides home loans using its own money. The loans are usually sold to investors such as insurance companies and Fannie Mae.
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Mortgage broker
A company that matches lenders with prospective borrowers who meet the lender's criteria. The mortgage broker does not make the loan, but receives payment from the lender for services.
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Mortgage insurance
Required by lenders in some loans to protect them from a possible default . All conventional loans with less than a 20 percent down payments require private mortgage insurance, or PMI.
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Mortgage life insurance
A special type of insurance that will pay off a mortgage if the borrower dies before the debt is retired.
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Mortgagee
A bank or other financial institution that lends money to the borrower. The borrower is considered the mortgagor.
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Mortgage-interest deduction
The tax write-off that the Internal Revenue Service allows most owners to claim for the annual interest payments they make on their real estate loans.
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Mortgagor
The person who borrows money to purchase a house. The lender is called the mortgagee.
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Motivated buyer
Any buyer with a strong incentive to make a purchase.
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Motivated seller
Any seller with a strong incentive to make a deal.
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Move-in condition
A house that is ready for a new occupant.
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Move-up buyer
A buyer who has purchased a home before and is looking for a bigger or more expensive home.
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Mullion
A vertical dividing bar between window lights or panels.
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Multidwelling property
A property that contains individual units for several households but carries only one mortgage.
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Multifamily mortgage
A mortgage on a multifamily dwelling with more than four families, typically an apartment building.
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Multiple listing service (MLS)
The service combines the listings for all available homes in an area, except For-Sale-By-Owner (FSBO) properties, in one directory or database.
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Multiple offers
Multiple purchase offers occur in hot markets or hot neighborhoods.
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Municipal housing inspector
Inspectors employed by cities or counties to check all construction sites and verify that contractors are meeting building codes.
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Nail pops
Nails in load-bearing parts of new homes that pop out slightly because of settling of the structure.
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Needs-based pricing
A seller's asking price that is based on factors such as the required funds to pay off the mortgage, the cost of remodeling or the purchase of another house.
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Negative amortization
The situation occurs when a borrower's monthly payment is not large enough to cover both the principal and interest of a loan. As a result, the outstanding balance of the loan actually grows larger with each payment rather than smaller. Most fixed-rate loans are not subject to negative amortization, but many adjustable-rate mortgages are susceptible.
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Negative-slope driveway
A driveway that drops from street level to the garage.
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Neo-traditional planning
Planning of a community that favors the return of new-home development with such traditional features as grid-street patterns, prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service areas.
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Net cash flow
Investment property that generates income after expenses such as principal, interest, taxes and insurance are subtracted.
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Net worth
The worth of a person or company based on the difference between total assets and liabilities.
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New Urbanism
A community design philosophy that favors the return of new-home development with such traditional features as prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service areas.
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Niche
A small recessed area in a wall, traditionally arched at the top.
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NIMBY (Not In My Back Yard)
The response sometimes given by neighborhoods and communities to proposed changes or development.
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No cash-out refinance
The amount of the new mortgage covers the remaining balance of the first loan, closing costs, any liens and cash no more than 1 percent of the principal on the new loan.
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No-competition lots
A lot in which the buyer's home will be constructed by a particular builder.
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No-documentation loan
A loan application that does not require verification of income but typically is granted in cases of large down payments.
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Non-assumption clause
A loan provision that prohibits the transfer of a mortgage to another borrower without lender approval.
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Non-liquid asset
An asset such as a house that is not easily turned into cash.
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Non-recurring closing costs
Costs that are one-time only fees for such items as an appraisal, loan points, credit report, title insurance and a home inspection.
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Note
The legal document that requires a borrower to repay a mortgage at a certain interest rate over a specified period of time.
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Note rate
The interest rate specified in a mortgage note.
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Notice of default
A lender's initial action when a mortgage payment is late and attempts to reconcile the issue out of court have failed.
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Online real estate listings
Properties listed for sale on the Internet.
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Open house
A marketing tool in which a listing agent opens a house for view.
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Open listing
A property given to a number of brokers to market at the same time.
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Open space
Undeveloped land or common areas in a planned community reserved for parks, walking paths or other natural uses.
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Option
A situation in which a buyer puts down money for the right to purchase a piece of real estate within a set time period but does not have an obligation to buy.
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Oral agreement
Contractual arrangements that are not in writing and are usually not legally binding.
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Original principal balance
The amount of principal owed on a loan before a borrower makes any payments.
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Origination fee
A fee charged by most lenders--also called points--for processing a loan. A point is 1 percent of the total loan amount.
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Overhang
A protruding structural feature.
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Owner financing
A transaction in which the seller of a property agrees to finance all or part of the purchase.
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Panel
A section or division of a wall, ceiling or a flat piece of building material that forms the part of the surface of a wall, door or cabinet.
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Paneling
Strips of wood or wood material applied as a finish to a wall.
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Parcel
An officially described piece of land.
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Parking strip
The strip of grass between the sidewalk and the street in front of a house.
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Partition
Any kind of structure dividing one room or space from another.
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Partition
An interior wall.
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Partnership
There are several partnership options for unmarried individuals to buy a piece of property, such as live-in partnerships (in which both buyers share the residence) or a shared-equity partnership (in which one buyer lives in the home and the other is an investor in the property).
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Passive loss
A tax term that refers to any loss from a passive activity, such as the ownership but not the operation of a piece of rental real estate.
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Passive solar system
A system that supplies solar heat without the use of electric fans or pumps.
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Patent defect
A visible deficiency in a piece of property, such as a cracked basement slab or a sagging porch.
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Patio
An interior courtyard or a paved backyard area.
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Payment cap
A legal limit on the amount a monthly payment can increase on an adjustable-rate mortgage.
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Percolation test
A test used to determine the ability of soil to accommodate a septic system.
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Per-diem interest
Interest charged or accrued daily.
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Perennial
Any plant that produces leaves, flowers and seeds from year to year, such as irises or peonies.
Pergola
An arbor with an open roof of rafters supported by posts or columns.
Personal property
Any moveable property in a house such as furniture or appliances.
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Pest-control inspection
A common pest-control inspection is a termite inspection, which is required in some states, such as California.
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Pier
A rectangular masonry support column.
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PITI (Principal, Interest, Taxes, Insurance)
When a buyer applies for a loan, the lender will calculate the principal, interest, taxes and insurance. The figure is designed to represent the borrower's actual monthly mortgage-related expenses.
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Planned communities
The concept began in the 19th century and describes any town or neighborhood built with certain guidelines and goals.
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Planned-unit development
Residents own the home and the land, and share the use and financial responsibility for common areas.
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Plaster
A labor-intensive and more costly wall finish.
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Pocket door
A sliding door that retreats into the wall when opened.
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Point
Fees charged by lenders at the time a loan is originated. A point is equal to 1 percent of the total loan amount.
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Porch
The structure can be a simple covered entrance to a home or a fully enclosed room on the outside of a residence.
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Porte cochere
A porch-like roof extending over a driveway.
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Portfolio lender
A lender who makes loans with its own funds and keeps the loans on the company's books--in other words, inside the institution's "portfolio"--rather than selling the loan on the secondary market.
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Portico
A porch supported by a row of columns.
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Possession
When a buyer signs the papers and receives the keys to the house, the buyer officially takes possession.
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Power of attorney
A document that authorizes an individual to act on behalf of someone else.
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Pre-approval letter
A letter from a lender that informs a seller about the amount of money that a potential buyer can obtain.
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Prepaid expenses
The costs for taxes, insurance and assessments paid before the due date.
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Prepaid interest
Interest paid before it is due. For example, at the close of a real estate transaction borrowers usually pay for the interest on their loan that falls between the closing period and the first monthly payment.
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Prepayment penalty
Lenders can impose a penalty on a borrower who pays a loan off before its expected end date.
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Prequalification
Many lenders will prequalify a borrower who is shopping for a loan by completing a preliminary assessment of the buyer's ability to pay for a home.
Pre-sold home
Homes that are sold before they are built.
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Pressure relief valve
A safety vent that relieves excess pressure in a water heater.
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Price range
The range of how much a buyer is willing to pay for a home.
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Primer
The initial coat of paint that is applied before the final topcoat.
Principal
The amount of money that the borrower owes on a mortgage.
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Principle of conformity
The idea that a house will more likely appreciate in value if its size, age, condition and style are similar to, or conform to, other houses in the neighborhood.
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Principle of progression
An appraisal term which states that real estate of lower value is enhanced by the proximity of higher-end properties.
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Principle of regression
An appraisal term which states that the value of higher-end real estate can be brought down by the proximity of too many lower-end properties.
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Privacy fence
A structure erected between two pieces of property.
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Private mortgage insurance (PMI)
A special type of loan insurance that many lenders require borrowers to purchase if the borrower's down payment is less than 20 percent of the home's purchase price.
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Probate sale
A real estate sale triggered by the death of the owner, with proceeds to be divided among heirs or creditors.
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Production home
Homes that are mass-produced by one builder in a project.
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Programming
A written summation by an architect of a project's design objectives, constraints and criteria.
Project budget
A fiscal outline that includes the construction budget and all costs for land, furniture, equipment, financing, professional services, contingencies and owner-furnished goods and services.
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Property line
The official dividing line between properties.
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Property report
A disclosure issued by the state when a time-share project is located or sold.
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Property tax
Property taxes are calculated at about 1.5 percent of the current market value.
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Property tax deduction
The U.S. tax code allows homeowners to deduct the amount they have paid in property taxes.
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Property value
The value of a piece of property is based on the price a buyer will pay at a certain time.
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Proration
Agreed-upon percentages of certain expenses associated with a piece of property that must be paid by the buyer or the seller at the time of closing.
Punch list
Buyers compile a punch list during the final walk-through detailing items to be fixed before closing.
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Purchase agreement
A document which details the purchase price and conditions of the transaction.
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Purchase-money mortgage
A mortgage that a borrower obtains to acquire a property.
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