Amortization – paying your mortgage off over time, with some portion of your loan payments going to pay interest charges, and some portion going to pay the principal loan amount (i.e., the amount you owe) off.  Mortgages can be fully amortized (meaning that some portion of every payment goes to pay principal), interest-only (meaning that for at least some period of time, the minimum payment does not pay any of the principal off), or negatively amortized (meaning that the minimum payment pays even less than the interest being charged on the loan, so that the principal balance actually increases)

Adjustable rate mortgage (ARM) – a mortgage in which the interest rate and payment adjusts over time.

Fixed rate mortgage – a mortgage in which the interest rate and payment are fixed over time.

Closing, close of escrow – the culmination of a real estate purchase/sale transaction, at which time the ownership of the property is transferred from seller to buyer. The ceremonies specific to any given closing differ in accordance with local custom; some involve both parties, their agents and attorneys sitting around a conference room table, signing papers, and the sellers handing over the keys. In other areas, closing might involve nothing more than a phone call from the escrow holder several days after a party signed their documents indicating that the deed has been recorded with the county.

Resale – the purchase or sale of a home which has previously been owned by another owner (i.e., not the builder or developer).

Subprime – the term for a class of mortgages which no longer really exists, loans with lending guidelines requiring little or no downpayment, marginal credit scores, and no documentation of income, in exchange for higher interest rates. Loans with low-interest and low-payment introductory periods which adjusted to fully amortized loans (sometimes doubling the monthly payment) also fall into this category.

Interest-only – refers to a type of home loan where, for a certain number of years at the beginning of the mortgage, the borrower is required to pay only the interest on the loan, and is not required to pay anything toward the principal.

Loan modification  – a lender’s agreement to alter any of the terms of a home mortgage. Most often, loans are modified to reduce the interest rate, monthly payment

Seller financing/carry-back – an arrangement in which the seller agrees to take payments for some or all of the purchase price in payments from the buyer over time.

Seller incentives – treats offered by sellers with the intention of luring in buyers. Seller incentives can include personal property, financing assistance, prepayment of HOA dues, closing cost credits and more.