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Glossary - H

Mortgage Brokers Glossary - H

Hedge:

A fairly complex money market instrument the simple purpose of which is essentially to insure a mortgage lender (or borrower, through a protected or split-term mortgage) against interest rate movements. In the lender's case the price of this insurance will vary depending upon many political and economic factors, but will generally be lower when interest rates and the economy are less volatile. The buyer on the other hand can hedge at no cost, or at a reasonable rate premium by using specifically designed products.

High-Ratio Mortgage:

A mortgage which is greater than 80% (Loan To Value ratio) of the value of the property. Normally requires insurance to be paid to protect the lender. (see Mortgage Insurance)

Home Inspection:

An examination of the structure as well as mechanical systems to determine a home's safety; makes the potential homebuyer attentive of any repairs which may be needed.

Home Inspection Report:

A report commissioned by a property owner or purchaser, usually to verify the condition of a property prior to the "firming up" of a Real Estate transaction. The scope and detail may vary, but most reports indicate the specific problem and the cost to repair. Unfortunately, no licensing is required, and this service is not specifically regulated other than by general consumer protection legislation. The best safeguard against inadequate work is to ask for the resume of the Inspector, and if possible check references from previous customers.

Home Warranty:

It offers safety for mechanical systems as well as attached appliances against sudden repairs not covered by homeowner's insurance, overage extends over a particular time period and does not cover the home's structure.

Homeowner's Insurance:

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

Housing Counseling Agency:

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

HVAC:

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