Glossary

See mortgage underwriting.

Ownership or use that is shared with others, with no one owner having exclusive rights in a portion of the property.

An increase in the value of real estate resulting from no effort on the part of the owner; often the result of an increase in population, such as when the value of land in the path of growth appreciates. Appreciation of land in the path of growth is considered an unearned increment because the landowners did nothing to cause it.

One-time expenses incurred before a service is provided. For example, loan origination fees and discount points are upfront costs of a mortgage loan. Also, mortgage insurance provided through the FHA requires an upfront premium that must be paid when the loan is originated (it can be part of the loan, however).

See maintenance costs.

City property; closely settled property. Urban property is more valuable than rural or suburban land because of its greater business activity.

Charging a rate of interest greater than that permitted by law. Each state has its own usury laws, with different ceiling interest rates applying to each type of loan. Penalties are severe for exceeding usury rates.

Services such as electricity, water, sewage, gas and garbage collection. The cost of utilities is an important expense for most households and should be taken into account when budgeting for a home purchase. Changing homes may mean higher utility costs.