GLOSSARY OF TERMS

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obsolescence
The loss of value due to factors that are outmoded or less useful.  Obsolescence may be functional or economic.
 
origination fee
A fee imposed by a lender to cover certain processing expenses in connection with making a real estate loan.  Usually a percentage of the amount loaned, such as one percent.
 
open-end loan
A mortgage loan that is expandable by increments up to a maximum dollar amount, the full loan being secured by the same original mortgage.
 
option
An agreement to keep open for a set period an offer to sell or purchase property.
 
owner financing
A  property purchase transaction in which the property seller provides all or part of the financing.