We hope this Glossary of Mortgage and Real Estate Terms helps you understand the home buying and financing process. Should you have any further questions, please do not hesitate to contact your Loan Officer for answers.

# A B C D E F G H I J K L M N O P Q R S T U V W XYZ

O Terms

Offer to Purchase: A written document completed by a buyer specifying the terms and conditions under which they are willing to purchase real estate.

 

Offeree:  One who receives an offer.  In real estate, the seller.

 

Offeror:  One who extends an offer to another.  In real estate, the buyer.

 

Open-End Mortgage: A mortgage with a provision that the outstanding loan amount may be increased upon mutual agreement of the lender and the borrower,

 

Origination Fee: The fee that the lender charges the borrower to cover the cost of issuing a loan commitment. It pays for costs, which includes collecting information about the borrower's creditworthiness and the property. The fee is usually computed as a percentage (for example, 1 %) of the mortgage loan. It usually does not include fees for appraisals, credit reports, inspections and loan document preparation. By paying points, the lender can charge a rate of interest based on the cost of the funds, without increasing the rate to recoup these costs.

 

Owner-Occupied Property: The borrower or a member of the immediate family lives in the property as a primary residence.