Browsing Mortgage Glossary by O

"O" arranged origination and financing descriptions that you may or may not have seen while purchasing a home or while reading articles in this directory.

Offer
Indication by a potential buyer of a willingness to purchase a home at a specific price; generally put forth in writing.
Original Principal Balance
The total principal owed on a mortgage prior to any payments being made.
Origination
The process of preparing, submitting, and evaluating a loan application; generally includes a credit check, verification of employment, and a property appraisal.
Origination Fee
The charge for originating a loan; is usually calculated in the form of points and paid at closing. One point equals one percent of the loan amount. On a conventional loan, the loan origination fee is the number of points a borrower pays.
Owner Financing
A home purchase where the seller provides all or part of the financing, acting as a lender.
Ownership
Ownership is documented by the deed to a property. The type or form of ownership is important if there is a change in the status of the owners or if the property changes ownership.
Owner’s Policy
The insurance policy that protects the buyer from title defects.

"." HUD.gov. U.S. Department of Housing and Urban Development, n.d. Web. .