Home / Glossary

The language of home.

HELOC? R-value? Curb appeal? Plain-language definitions of the terms you'll run into.

Amortization
Paying off a loan through scheduled payments that cover interest first and principal over time.
Appraisal
A licensed appraiser's professional opinion of a home's market value, usually required by lenders.
APR
Annual percentage rate: the yearly cost of borrowing including interest and certain fees. Useful for comparing loans.
Cash-out refinance
Replacing your mortgage with a larger one and receiving the difference in cash.
Change order
A written amendment to a construction contract that changes the scope, price, or schedule.
Closing costs
Fees paid when a real estate or loan transaction is finalized, such as appraisal, title, and origination fees.
Comparable sales (comps)
Recently sold homes similar to yours, used to estimate market value.
Curb appeal
How attractive a home looks from the street. It shapes a buyer's first impression.
Deadbolt
A lock with a bolt that can't be pushed back without turning a key or thumb-turn. Grade 1 is the strongest residential rating.
Equity
Your home's market value minus what you owe on it.
Escrow
A neutral third party holding funds or documents until conditions are met; also an account for property taxes and insurance.
HELOC
Home equity line of credit: a revolving credit line secured by your home, usually with a variable rate.
Home equity loan
A lump-sum loan secured by your home, usually at a fixed rate.
Ice dam
A ridge of ice at a roof's edge that blocks melting snow from draining, often caused by attic heat loss.
Inverter
The device that converts solar panels' DC electricity into the AC electricity your home uses.
kWh
Kilowatt-hour: the unit utilities use to measure electricity use: 1,000 watts for one hour.
Lien waiver
A document in which a contractor or supplier gives up the right to place a lien on your property once paid.
Loan-to-value (LTV)
Your loan balance divided by your home's value. Lenders use it to set borrowing limits.
Net metering
A utility billing policy that credits solar owners for excess electricity sent to the grid.
Permit
Local government approval required for many construction, electrical, plumbing, and roofing projects.
PPA
Power purchase agreement: you host solar panels owned by a company and pay for the electricity they produce.
Pre-emergent
A lawn treatment that stops weed seeds from sprouting; timing depends on soil temperature.
Punch list
The final list of small fixes a contractor completes before a project is considered finished.
R-value
A measure of insulation's resistance to heat flow. Higher numbers insulate better.
Weatherstripping
Material that seals gaps around doors and windows to stop drafts.