Hold 

A restriction on all or part of a members' balance, usually placed by a teller until a cashed or deposited check has cleared.

Home Equity 

The difference between what you paid for your home and what you get when you sell.

Home Equity Loan 

Describes any mortgage loan that is not used to finance the purchase of the home. Can be used to turn credit card debt, which is unsecured, into debt secured by the borrower's home. Depending on the terms of the borrower's contract, the borrower's home is in jeopardy if the borrower fails to make payments.

Home Inspection 

A professional inspection of a home to review the condition of the property. The inspection should include an evaluation of the plumbing, heating and cooling systems, roof, wiring, and foundation and pest infestation.

Home Ownership and Equity Protection Act (HOEPA) 

A law that requires additional disclosures for certain types of loans.

Home Warranty 

Offers protection for mechanical systems and attached appliances against unexpected repairs not covered by homeowner's insurance; overage extends over a specific time period and does not cover the home's structure.

Homebuyer Education Learning Program (HELP) 

An educational program from the FHA that counsels people about the home buying process; HELP covers topics like budgeting, finding a home, getting a loan, and home maintenance; in most cases, completion of the program may entitle the homebuyer to a reduced initial FHA mortgage insurance premium from 2.25% to 1.75% of the home purchase price.

Homeowner's Insurance 

An insurance policy that combines protection against damage to a dwelling and it's contents with protection against claims of negligence or inappropriate action that result in someone's injury or property damage.

Housing Counseling Agency 

Provides counseling and assistance to individuals on a variety of issues, including loan default, fair housing, and home buying.

Housing Expense Ratio 

The percentage of your gross monthly income that goes toward paying for your housing expenses.

HUD 

The U.S. Department of Housing and Urban Development; enforcing fair housing laws.

HUD-1 Settlement Statement

Also known as the "settlement sheet," which itemizes all closing costs and must be given to the borrower at or before closing. It provides the sales price, and down payment, as well as the total settlement costs required from the buyer and seller.

HVAC 

Heating, Ventilation and Air Conditioning; a home's heating and cooling system.

Index 

A measurement used by lenders to determine changes to the Interest rate charged on an adjustable rate mortgage (ARM).

Index 

Regularly published statistical measure of widely accepted rates that changes periodically.

Individual Accounts 

Only the member is permitted to make transactions on the account.

Individual Retirement Account (IRA) 

A retirement savings account for individuals. Deposits may be tax deductible. These contributions cannot exceed specific amounts without penalties.

Inflation 

The number of dollars in circulation exceeds the amount of goods and services available for purchase; inflation results in a decrease in the dollar's value.

Inquiry 

A request for a copy of your credit report. An inquiry occurs every time you fill out a credit application and/or request more credit. Too many inquiries on a credit report can lower your credit score.

Inspection Certificate 

A document verifying that a property is as described. The inspection is usually performed by a designated agent and may be accepted in place of a survey

Inspector 

A designated agent who inspects and documents the property as described and verified in an inspection certificate.

Insurance 

Protection against a specific loss over a period of time that is secured by the payment of a regularly scheduled premium.

Interest Rate 

The amount of interest charged on a monthly loan payment; usually expressed as a percentage.

Interest 

The amount paid for the use of money. Thus, financial institutions pay savings depositors interest for the use of the funds on deposit, and borrowers pay financial institutions interest for the use of the money advanced to them.

Investor 

A company that invests in mortgages that other companies have originated. They purchase the mortgage for a set amount and collect the payments. Ultimately, a borrower's loan may be sold to an investor.

Joint Accounts 

Both the member and the joint owners may make deposits and withdrawals on the account. However, only the primary owner can negotiate loans on the account.

Joint Owner 

Any person authorized by the primary owner to transact business on the account, i.e., deposits and withdrawals. A joint owner is not a SECU member unless s/he has her/his own SECU savings account opened under the individual's Social Security number.

Judgment 

A legal decision; when requiring debt repayment, a judgment may include a property lien that secures the creditor's claim by providing a collateral source.

Lease Purchase 

Assists low to moderate income homebuyers in purchasing a home by allowing them to lease a home with an option to buy; the rent payment is made up of the monthly rental payment plus an additional amount that is credited to an account for use as a down payment.

Lender 

Any person or entity advancing funds, which are to be repaid. A general term encompassing all mortgagees, and beneficiaries under deeds of trust.

Liabilities 

Your debts and other monetary obligations.

Liabilities 

All claims against a corporation which include salaries, wages, dividends declared payable, accrued taxes payable.

Lien 

A legal claim filed against your property that must be satisfied when the property is sold. With respect to a mortgage, it is the right of the lender to take the title to your property if you do not make the payments due on the mortgage.

Liquidity 

In credit union terms, that portion of total assets not held in fixed assets and not loaned to members. These are the funds for which the credit union must make investment decisions.

Listing Agent 

A real estate agent obtaining a listing, as opposed to the selling agent.

Loan Balance 

The amount owed, including principal and interest.

Loan Flipping 

A lender refinances your loan more than once with a new long term, high cost loan. Each time the lender "flips" the existing loan; you must pay points and assorted fees.

Loan Fraud 

Purposely giving incorrect information on a loan application in order to better qualify for a loan; may result in civil liability or criminal penalties.

Loan Origination Fees 

The fee paid to your mortgage lender for processing the mortgage application. This fee is usually in the form of points. One point equals 1% of the mortgage amount.

Loan to Value Ratio 

The relationship between the amount of a mortgage loan and the appraised value of the security, expressed as a percentage of the appraised value.

Loan 

Money borrowed that is usually repaid with interest.

Loan To Value (LTV) Ratio 

A percentage calculated by dividing the amount borrowed by the price or appraised value of the home to be purchased; the higher the LTV, the less cash a borrower is required to pay as down payment.

Lock In Rate 

A written agreement guaranteeing a specific interest rate when your mortgage closes.

Loss Mitigation 

A process to avoid foreclosure; the lender tries to help a borrower who has been unable to make loan payments and is in danger of defaulting on his or her loan.

Low Down Payment Feature

A feature of a mortgage, usually a fixed rate mortgage that helps you buy a home with as little as a 3% down payment.

Lump Sum 

A single loan advance at closing