MORTGAGE DICTIONARY

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HIGH RATIO MORTGAGE:
A mortgage in which the amount of money borrowed is equal to or greater than 75% of the purchase price/appraised value of the property against which it is secured. Will require some sort of insurance, usually provided by a government agency.

HISTORICAL SCENARIO:
An attempt to predict the interest rate fluctuations of a Variable or Adjustable Rate Mortgage on the basis of the behaviour of interest rates in a previous period.

HOLDBACK:
A percentage of a contract price which is retained by a contractor or lender until the project is complete and all bills for that project are paid. The percentage may be set by custom or by statute.

HOME EQUITY CONVERSION MORTGAGE (HECM):
Also known as a "reverse mortgage", a loan designed specifically for people without income but with a great deal of equity in their home (i.e. retired people). The loan may require periodic payments or may simply accumulate interest on the original principal until the property is sold (by the borrower or after the death of the borrower).

HOME EQUITY LINE OF CREDIT:
A special kind of loan (also known as a "revolving loan") which is secured against a property and allows the owner to borrow and repay money at her leisure. Periodic payments of at least accumulated interest are required but the loan is fully open: may be paid out in whole or in part at any time and, if there is still money available under the loan ceiling, the borrower may take more money for her use.

HOME IMPROVEMENT LOAN:
A loan made for the purposes of making improvements to a property.

HOMESTYLE MORTGAGE LOAN:
A mortgage specifically designed to allow owners to improve their existing homes.

HOUSE-POOR:
A description of the state of having very little disposable income after paying the financing and carrying costs of one's home.

HOUSING AND URBAN DEVELOPMENT (HUD):
Federal Agency charged with the duty of overseeing a number of enactments relating to housing in America.

HOUSING ASSISTANCE COUNCIL (HAC):
Funded by HUD, an agency designed to support low-income housing development in rural areas.

HOUSING EXPENSE RATIO:
A comparison of a family's monthly gross income with the carrying costs of their home.

HOUSING FINANCE AGENCY:
State body whose function is to provide loans to citizens who cannot obtain home ownership loans through normal channels.

HUD:
See "Housing and Urban Development".

HUD I SETTLEMENT STATEMENT:
The form in which the costs of purchasing a home are itemized.

HUD MEDIAN INCOME: Used in determining eligibility for various HUD programs, the average income for a family in a specific area.

HUD-1 STATEMENT:
See "HUD I Settlement Statement".

HYBRID MORTGAGE:
A form of mortgage in which the compensation to the lender may include receiving income directly from the use of the property.

HYPOTHECATE:
To pledge as security for a mortgage an asset of which the pledgor retains possession (i.e. the dwelling upon which a mortgage is registered).