Origination Fee - See Points. 

Payment Cap - Percent of the initial loan payments that the payments are allowed to go up by on an adjustable rate loan. 

Payoff - Statement by lender of how much money will be required to payoff and reconvey a deed of trust or mortgage or both. 

Planned Unit Development (aka PUD) - Similar to a condominium except that the units are usually detached and the owner usually owns the land.

Points - Fee charged by a lender. Usually one point equals 1% of the loan amount. 

Private Mortgage Insurance (aka PMI) - Insurance that covers the lender against loss due to default on a loan. Usually required on loans with less than 20% down payment. 

Purchase Contract - Written agreement between seller and buyer outlining the terms of a property purchase. A binding agreement in most states. Can also include a deposit receipt for earnest money deposit. 

Quitclaim Deed - A special deed that resolves a conflict or "cloud" to title. Normally used in divorce situations where one spouse buys another out of a property. 

Rate Cap - Limits the amount that the rate on an adjustable rate loan can either go up or down. 

Recession Period - Most states have a "cooling off" period on refinances that allows borrowers to cancel their transaction after signing loan documents. A rescission period is not given on purchase transactions because the escrow period is considered the "cooling off" period. 

Reconveyance - Recorded notice to all parties that a loan has been paid off and a deed is no longer valid. 

Servicer - The company that accepts payments on behalf of the lending institution. This company and the lender can be one in the same, however they don't have to be. Also, they do other things such as set up and administer impound accounts, do account analysis, etc. 

Subordination - A deed of trust or other obligation on a property that is allowed to go behind, in order of payoff, another deed or obligation. 

Transfer Fees/Taxes - Fees that are charged by counties and condominium associations for transferring title from one party to another. 

Underwriting - The analysis of a borrowers loan package for the purposes of granting a mortgage. This includes credit analysis, analysis of the property being borrowed against, etc. 

VA Loan Guarantee - Guarantee issued by the Veterans Administration that allows a borrower to obtain a VA loan through a VA approved lender. 

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