There are various common phrases and words used by broker, lender, while purchasing or selling real estate. Below are listed some of them.

1. Additional Rate Mortgage (ARM)- An ARM is a mortgage with an interest rate that adjusts periodically to reflect changes in market conditions. Your mortgage payment is dependent on changes in rate of interest.
   
2. Amortization- The repayment of home loan is through monthly instalments, which includes both principal and the interest.
3. Annual Percentage Rate (APR)- It refers to the interest rate that reflects the actual cost of a mortgage as a yearly rate. As APR includes commission and other costs associated with mortgage, it is generally higher than the simple interest rate.
4. Application Fee- This fee is usually paid to the lender to review and complete an application form.
   
5. Balloon Payment- This is also called interest-only loan, where the monthly payment is lower as you are paying only the interest. The unpaid principal is paid in one or two balloon payments.
6. Fixed rate Mortgage- A mortgage with an interest rate that stays the fixed until full payment. Monthly payment in fixed rate mortgage is stable.
7. Negative Amortization- A negative amortization or differed interest loan contains payment option that may not pay the full amount of interest due in each month. This due amount is added to the remaining balance to create negative amortization.
   
8. Closing costs- Various expenses incurred by buyers and sellers in transferring ownership of a property, other than the price of the property. Lenders often provide estimates of closing costs to the prospective homebuyers even before settlement.
9. Due-on-sale provision- A provision in a mortgage home loan that allows the lender to demand full repayment, if the borrower sells the property that serves as the security for the loan.
10. Equal Credit Opportunity Act (ECOA)- A federal law for all lenders and other creditors to make credit equally available without discrimination based on race, caste, creed, sex, age, religion or national origin.
    
11. Escrow- It is mainly the third party set up by the lender, who carries out the instructions of both buyer and seller to handle the paperwork at the time of settlement.
12. Foreclosure- This is a legal process which involves a forced sale of the property at public auction because default in loan-not paying loan amount in time.
13. Good Faith Estimate- A document provided when you apply for a loan. It provides estimates of all costs associated with obtaining and closing a mortgage loan.
    
14. Insured mortgage- A mortgage that is protected by the Federal Housing Administration or by private mortgage insurance. If the borrower defaults on the loan, the insurer must repay the lender the insured amount.
15. Lock-in-period- The time period during which the lender has guaranteed an interest rate to a borrower.
16. Pre-approval- A lender’s conditional agreement to lend a specific amount on specific terms to a homebuyer after preliminary information provided by you.
    
17. Truth-in-Lending- A federal law that requires lenders to fully disclose in writing the terms and conditions of credit including Annual Percentage Rate and other charges.