A situation in which a buyer puts down money for the right to purchase a piece of real estate within a set time period but does not have an obligation to buy.
A home loan where the borrower has multiple payment options each month.
The total amount of principal owed on a mortgage before any payments are made.
On a government loan the loan origination fee is one percent of the loan amount, but additional points may be charged which are called discount points. One point equals one percent of the loan amount. On a conventional loan, the loan origination fee refers to the total number of points a borrower pays.
A property purchase transaction in which the property seller provides all or part of the financing.