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Home equity
line of credit (HELOC)
A line of credit secured by the equity in a borrower's residence.
It can be used for home improvements, debt consolidation and other
major purchases or expenses. Interest on these loans may be tax
deductible. (Consult a tax advisor about tax deductibility of interest.)
At closing, a credit limit is established. In most cases, the borrower
can access the line of credit by a variety of access devices, such
as convenience checks, debit cards and credit cards.
Home equity
loan
An installment loan secured by the equity in a borrower's residence.
It can be used for home improvements, debt consolidation and other
major purchases or expenses. Interest on these loans may be tax
deductible. (Consult a tax advisor regarding tax deductibility of
interest.) On the funding date, all of the principal is advanced
for the benefit of the borrower(s).
Home inspection
An inspection of the condition of a property. It's conducted by
a third party who knows what to look for, including all major appliances
and structural elements. If an inspector finds something wrong,
and your sales contract allows you to, you can request that the
seller pay for the repairs. If the seller refuses, and your sales
contract allows you to, you may not have to proceed with the purchase
of the home.
Homeowners'
association
An organization of property owners that administers the rules and
upholds the covenants of a subdivision, development or condominium
complex.
Homeowners'
insurance
Insurance to protect your home against damage from fire, hurricanes
and other catastrophes. Usually, homeowners' insurance also covers
you against theft and vandalism, as well as personal liability in
case someone is hurt or injured on your property. A lender will
likely require you to name it as a payee under the insurance if
you need to make a claim.
HUD
An acronym for the U.S. Department of Housing and Urban Development.
HUD is a governmental agency responsible for the implementation
and administration of housing and urban development programs.
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