Housing Finance Agency - A state agency which offers a limited amount of below-market-rate home financing for low-and moderate-income households.

Index - The interest rate or adjustment standard which determines changes in monthly payments for an adjustable rate loan.

Infrastructure - The public facilities and services needed to support residential development, including highways, bridges, schools, and sewer and water systems

Interest - The cost paid to a lender for use of borrowed money.

Joint Tenancy - A form of ownership by which tenants own a property equally. If one dies, other would automatically inherit entire property.

Level Payment Mortgage - A mortgage whose payments are identical for each month over life of loan.

Mortgage Broker - A broker who represents numerous lenders and helps consumers find affordable mortgages; broker charges a fee only if consumer finds a loan.

Mortgage Commitment - A formal written communication by a lender, agreeing to make a mortgage loan on a specific property, specifying loan amount, length of time and conditions.

Mortgage Company (Mortgage Banker) - A company that borrows money from a bank, lends it to consumers who want to buy homes, then sells loans to investors.

Mortgagee - The lender who makes a mortgage loan.

Mortgage Loan - A contract in which borrower’s property is pledged a s collateral and which can be repaid in installments over a long period. The mortgagor (buyer) promises to repay principal and interest, to keep home insured, to pay all taxes, and to keep property in good condition.

Mortgage Origination Fee - A charge by a lender for work involved in preparing and servicing a mortgage application (usually 1 percent of loan amount).

Negative Amortization - An increase in outstanding balance of a loan when a monthly payment is not large enough to cover all of interest due.

Note - A formal document showing existence of a debt and stating terms of repayment.

PITI - Principal, interest, taxes, and insurance (the 4 major components of monthly housing payments).

Point - A charge of 1 percent of mortgage amount. Points are a one-time charge assessed by lender at closing to increase interest yield on a mortgage loan.

Prepayment - Payment of all or part of a debt prior to its maturity.

Principal - The amount borrowed in a loan, excluding interest and other charges.

Property Survey - A survey to determine boundaries of your property. The cost will depend on complexity of survey.

Rapid Payoff Mortgage - (See Growing Equity Mortgage).

Recording Fee - A charge for recording transfer of a property, paid to a city, county, or other appropriate branch of government.

Real Estate Settlement Procedures Act (RESPA) - A federal law requiring lenders to provide home buyers with information about known or estimated settlement costs. The act also regulates other aspects of settlement procedures.

R-Value - The resistance of insulation material (including windows) to heat passing through it. The higher number, greater insulating value.

Sales Contract - A contract between a buyer and seller which should explain, in detail, exactly what purchase includes, what guarantees there are, when buyer can move in, what closing costs are, and what recourse parties have if contract is not fulfilled or if buyer cannot get a mortgage commitment at agreed-upon terms.

Settlement - (See Closing).

Shared Appreciation Mortgage - A loan in which partners agree to share specified portions of downpayment, monthly payment, and appreciation.

Tenancy in Common - A form of ownership in which tenants own separate but equal parts. To inherit property, a surviving tenant would either have to be mentioned in will or, in absence of a will, be eligible through state inheritance laws.

Title - Evidence (usually in form of a certificate or deed) of a person’s legal right to ownership of a property.

Transfer Taxes - Taxes levied on transfer of property or on real estate loans by state and/or local jurisdictions.

Veterans Administration (VA) - A federal agency which insures mortgage loans with very liberal downpayment requirements for honorably discharged veterans and their surviving spouses.

Walk-Through - A final inspection of a home before settlement to search for problems that need to be corrected before ownership changes hands.

Warranty - A promise, either written or implied, that material and workmanship of a product is defect-free or will meet a specified level of performance over a specified period of time. Written warranties on new homes are either backed by insurance companies or by builders themselves.

Zoning - Regulations established by local governments regarding location, height, and use for any given piece of property within a specific area.

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Mark Mathis is a building designer and publisher of several stock house plan websites and informational resources including http://www.HousePlanCentral.com and http://www.HousePlanGallery.com. Be sure to subscribe to both site's eNewsletters to receive special offers, promotions, and subscriber-only features.

The choice of foundation is also affected by personal preferences and costs. Basements can add thousands of dollars to cost of a home compared to cost of a crawlspace. However, when you consider extra useable space created by a basement it is some of cheapest square footage space of a home. If you are tight on funds and can't afford basement then it may be a good idea to find a slightly smaller plan and use savings to create a basement. You'll end up with a lot more storage space and potential living space by doing this.

Changing Type of Foundation on your home:

Almost any house plan can have its foundation changed. It's common for people to design a different foundation if available foundations do not suit their needs. If you are currently working with a builder you may want to ask them if they will take care of making foundation changes for you. Sometimes with foundation design it may be helpful for somebody who is near you to do those changes because they will have more knowledge about your local soil conditions and slope of your lot.

When changing foundation types, pay attention to where you will put furnace, water heater, and stairs. If you need to add basement stairs, basement stairs can usually be put under other stairways or you may be able to replace a closet or small room with basement stairs. Another common place to put basement stairs is to replace a mechanical room with stairs and move mechanical items (such as furnace and water heater) to basement. Sometimes space near laundry room, or space near garage can be used for a basement stairs. Larger walk-in closets are sometimes reduced in size to allow space for basement stairs. You can often add a basement stairs to a plan without increasing size of plan. However, sometimes space may need to be added to a plan to provide room for a basement stairs.

It should be noted that it is owner's full responsibility to check with his/her local and state building authorities, his/her builder, and designer of house plan to ensure that home meets all applicable building codes and requirements.

============================================= Visit us online at: http://www.houseplancentral.com =============================================

Mark Mathis is a building designer and publisher of several stock house plan websites and informational resources including http://www.HousePlanCentral.com and http://www.HousePlanGallery.com. Be sure to subscribe to both site's eNewsletters to receive special offers, promotions, and subscriber-only features.