The Ultimate Real Estate Glossary: Letter Hs
Welcome back to the Ultimate Real Estate Glossary, where we take you through the working vocabulary of the real estate industry. We’re almost one-third of the way through the alphabet.
Any field of work always has jargon associated with it, so it pays to learn how the professionals talk!
For this edition, we’ll go through the real estate terms that start with the letter H.
Real estate terms: The letter H
Hazard insurance: Insurance that protects real estate properties from hazards like fire, storms, hail, and other natural events.
Home-finding assistance: A service offered by relocation companies to make employee relocation smooth and stress-free. This may take the form of a paid trip for the relocating employee to explore the new location. Exact stipulations will vary by company, so look carefully at what they provide. Home-finding assistance is typically included under destination services.
Homeowner’s Insurance: Insurance that covers losses and damages to a residence. It generally covers four types of incidents:
a. Interior damage
b. Exterior damage
c. Loss or damage of personal assets or belongings
d. Injuries sustained while on the property
Homeowner’s insurance may or may not cover natural disasters, depending on the policy. It’s usually required to apply for a mortgage. Not to be confused with a home warranty.
Home warranty: A type of warranty that covers home appliances and systems for a given period. Generally, home warranties cover appliances like refrigerators and water heaters, or systems like HVAC and plumbing. Check your specific warranty to find out which appliances and systems are covered. Not to be confused with homeowner’s insurance.
HUD: The Department of Housing and Urban Development.
It runs programs that support homeownership, increases the availability of affordable rental housing, reduces homelessness, and fight against housing discrimination. The FHA is one of its agencies.
HUD-1: A form required by the HUD’s Real Estate Settlement Procedures Act (RESPA). It discloses all charges and credits to both buyer and seller during a mortgage transaction.
Since October 3, 2015, the Closing Disclosure form has replaced the HUD-1 form. The HUD-1 remains in use for reverse mortgages and all mortgages applied for on or before October 3, 2015.
Hybrid adjustable-rate mortgage (Hybrid ARM): A type of mortgage that blends features from both adjustable-rate and fixed-rate mortgages. A hybrid ARM has an initial period where the interest remains fixed. Once this period is up, the rate starts to adjust based on market conditions. The adjusted rates reset at given intervals.
The periods of both the initial fixed rate and the adjustment intervals will depend on your circumstances, so consult your bank for more information. A common format is 5/1: a fixed-rate term of 5 years, with an adjustment interval every 12 months.
Conclusion
Real estate is a lot more than just the land and the houses built upon it. With our guide, you can figure out what else you need to learn and confirm what you already know. You’ll be a veteran property manager before you know it!
Come back next time for our next installment or to brush up on the previous letters. We’ll keep this glossary going until we finish up at Z.
Did we miss a word you wanted to know about? Leave a comment below, we’d love to hear from you!
Image courtesy of Christina Morillo