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This site contains comprehensive definitions for a wide range of terms that cover topics such as home, mortgage, insurance, homebuyer, real estate, property, buy home, home insurance, financing, home financing, home buyer, first time homebuyer, homes, homebuying, credit, condo...

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Application

A signed statement of facts made by a person applying for life insurance and then used by the insurance company to decide whether or not to issue a policy. The application becomes part of the insurance contract when the policy is issued.

Rule of 72

This is a very important rule to know. The rule is that the number 72 divided by the rate of return of your investment equals the number of years it takes for your investment to double.
For example
* At 1% your money will double in 72 years.
* At 2% your money will double in 36 years.
* At 3% your money will double in 24 years.
* At 4% your money will double in 18 years.
* At 5% your money will double in 14.4 years.
* At 6% your money will double in 12 years.
* At 7% your money will double in 10.3 years.
* At 8% your money will double in 9 years.
* At 9% your money will double in 8 years.
* At 10% your money will double in 7.2 years.

Segregated Fund

Sometimes called seg funds, segregated funds are the life insurance industry equivalent to a mutual fund with some differences.The term "Mutual Fund" is often used generically, to cover a wide variety of funds where the investment capital from a large number of investors is "pooled" together and invested into specific stocks, bonds, mortgages, etc.
Since Segregated Funds are actually deferred annuity contracts issued by life insurance companies, they offer probate and creditor protection if a preferred beneficiary such as a spouse is named. Mutual Funds don't have this protection.
Unlike mutual funds, segregated funds offer guarantees at maturity (usually 10 years from date of issue) or death on the limit of potential losses - at times up to 100% of original deposits are guaranteed which makes them an attractive alternative for the cautious and/or long term investor. On the other hand, with regular mutual funds, it is possible to have little or nothing left at death or plan maturity.

Conversion

The act of changing from one type of life insurance policy to another, without having to give evidence of insurability.

Issue Age

Age of an insured as at the policy issue date, using "age nearest" next birthday formula.

Premium (Credit Insurance)

Annual or monthly amounts payable, by a client, for a selected insurance coverage to insure debt obligations to their creditors are protected.

Certificate of Search or Abstract of Title

A document setting out instruments registered against the title to the property, e.g. deed, mortgages, etc.

Firm Offer

An offer to buy the property as outlined in the offer to purchase with no conditions attached.

Contingency

A condition that must be satisfied before a contract is binding. Inspection and obtaining financing are the two most common.

Bonus Room

A room with no specifically designated function, unlike a living room, bedroom, or kitchen. Is not included in the initial square footage.

Heat Pump

A device which uses compression and decompression of gas to heat and/or cool a house.

Noncombustible

The material will not burn. The glass fibers in PINK fiber glass insulation have a natural fire resistance, and are considered non-combustible when tested in accordance to ASTM E136.

Reinforcing Bar

See Rebar

Shim

Thin tapered piece of wood used for leveling or tightening a stair or other building element.

Siding

See Lap Siding