Glossary

Walk-through
An inspection of a property by the prospective buyer prior to closing on a mortgage.

Warranty deed
A document protecting a homebuyer against any and all claims to the property.

Wraparound Mortgage
A junior mortgage taken back by the seller for the amount of the property's purchase price less the buyer's down payment. The existing loan is retained and combined with a new, larger loan and the interest rate is set somewhere between the old rate and the current market rate. A typical wraparound is an interest-only loan with a 5-year balloon or less.

Yield
The ratio of investment income to the total amount invested over a given period of time; also known as "return on investment" or ROI.

Zero Point Option
An option which allows the borrower to opt to pay a slightly higher loan interest rate in lieu of paying the loan origination points generally charged for the particular loan product.

Zoning Ordinances
The acts of an authorized local government establishing building codes, and setting forth regulations for property land usage.