H – First Colony
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mortgage glossary

A B C D E F G H I J L M N O P R S T U V

Hazard Insurance

Insurance purchased by the borrower, and required by the lender, to protect the property against loss from fire and other hazards. Also known as “homeowner insurance”.

Home equity line of credit

A mortgage set up as a line of credit against which a borrower can draw up to a maximum amount. You can draw on the line by writing a check, using a special credit card, or in other ways.

Housing expense

The sum of mortgage payment, hazard insurance, property taxes, and homeowner association fees.

Housing expense ratio

The ratio of housing expense to borrower income, which is used (along with the total expense ratio and other factors) in qualifying borrowers.