Dictionary

Looking for a particular word? Search our dictionary, or simply click one of the words below for its definition.

Adjustable Rate Mortgage A mortgage loan in which the rate changes during the life of the loan, usually at one, three, or five year intervals. Changes are governed by the movement of an index, such as the Treasury bill, Treasury securities index, or a national or regional average cost of funds index.
Agreement of Purchase and Sale This legal document resembles an itemized sales receipt and outlines every aspect of your purchase, including the terms to which the customer and the builder have agreed.
Allowance(s) A sum of money set aside in the construction contract for items which have not been selected and specified in the construction contract. For example, selection of tile as a flooring may require an allowance for an underlayment material, or an electrical allowance which sets aside an amount of money to be spent on electrical fixtures.
Amendments to Agreement An amendment to an agreement means the customer and the homebuilder agree to change a part of the original Agreement of Purchase and Sale.
Amortization A payment plan by which a loan is reduced through monthly payments of principal and interest.
Annual Percentage Rate (APR) Annual cost of credit over the life of a loan, including interest, service charges, points, loan fees, mortgage insurance, and other items.
Annual Percentage Rate (APR) The cost of your credit as a yearly rate. This includes interest and certain additional costs and fees associated with the loan.
Appraisal An evaluation of a specific property to determine its current market value based on the property condition and recent sales of similar homes in a given market, in addition to other factors.
Approval Grant of loan based on proof of good title, proof of actual income/employment and the actual appraised value of the property being mortgaged.
Artist's Concept / Gallery These are Artist drawings that help the customers visualize what their completed house will look like. You will also here them referred to as elevation drawings or renderings. These terms all though often used interchangeable do have fine distinctions. Usually an elevation drawing or rending is created by an architect who is working on the floor plans versus an artists concept that often has landscaping added to the image.
Attic Access An opening that is placed in the dry walled ceiling of a home providing access to the attic.
Backfill The replacement of excavated earth into a trench around or against a basement /crawl space foundation wall.
Base or Baseboard A trim board placed against the wall around the room next to the floor.
Batt A section of fiber-glass or rock-wool insulation measuring 15 or 23 inches wide by four to eight feet long and various thickness'. Sometimes "faced" (meaning to have a paper covering on one side) or "unfaced" (without paper).
Beam A structural member transversely supporting a load. A structural member carrying building loads (weight) from one support to another. Sometimes called a "girder".
Bearing Wall A wall that supports any vertical load in addition to its own weight.
Breaker Panel The electrical box that distributes electric power entering the home to each branch circuit (each plug and switch) and composed of circuit breakers.
Brick Ledge Part of the foundation wall where brick (veneer) will rest.
Builder's Risk Insurance Insurance coverage on a construction project during construction, including extended coverage that may be added for the contract for the customer's protections.
Building Codes Community ordinances governing the manner in which a home may be constructed or modified.
Building Footpad This is the area of your Homesite that the foundation of your home stands on.
Building Location Survey The survey documents the exact location of your new home on the lot.
Cantilever An overhang where one floor extends beyond and over a foundation wall.. Example a fireplace location or bay window cantilever. A cantilever does not normally extend over 2 feet.
Capital The principal part of a loan, i.e. the original amount borrowed.
Capital and Interest A repayment loan and the most conventional form of home loan. The borrower pays an amount each month to cover the amount borrowed (or capital or principal) plus the interest charged on capital.
Capped Rate The mortgage interest rate will not exceed a specified value during a certain period of time, but it will fluctuate up and down below that level.
Casement Window A window with hinges on one of the vertical sides and swings open like a normal door.
Casing Wood trim molding installed around a door or window opening.
Caulking (1) A flexible material used to seal a gap between two surfaces e.g. between pieces of siding or the corners in tub walls. (2) To fill a joint with mastic or asphalt plastic cement to prevent leaks.
Change Order A written document which modifies the plans and specifications and/or the price of the construction Contract.
Chase A framed enclosed space around a flue pipe or a channel in a wall, or through a ceiling for something to lie in or pass through.
Closing Costs These are costs that will be incurred by you at the time your new home is complete. An example is land transfer tax.
Closing Costs Expenses incidental to a sale or purchase of real estate or the refinance of a mortgage loan, such as loan fees, title fees, appraisal fees, etc.
Closing Date This is the date by which your dream home will be completed.
CO An abbreviation for "Certificate of Occupancy". This certificate is issued by the local municipality and is required before anyone can occupy and live within the home. It is issued only after the local municipality has made all inspections and all monies and fees have been paid.
Cold Air Return The ductwork (and related grills) that carries room air back to the furnace for re-heating.
Condensation Beads or drops of water (and frequently frost in extremely cold weather) that accumulate on the inside of the exterior covering of a building. Use of louvers or attic ventilators will reduce moisture condensation in attics. A vapor barrier under the gypsum lath or dry wall on exposed walls will reduce condensation.
Construction, Frame A type of construction in which the structural components are wood or depend upon a wood frame for support.
Control Joint Tooled, straight grooves made on concrete floors to "control" where the concrete should crack.
Conventional Loan A mortgage loan not insured by a government agency (such as FHA or VA).
Crawl Space A shallow space below the living quarters of a house, normally enclosed by the foundation wall and having a dirt floor.
Credit Rating A report ordered by a lender from a credit agency to determine a borrower's credit habits.
Credit Report/Rating A written report detailing an individual’s credit history. This helps the lender decide the credit worthiness of a prospective borrower.
Culvert Round, corrugated drain pipe (normally 15" or 18" in diameter) that is installed beneath a driveway and parallel to and near the street.
Debt Ratio The amount of debt or payments one must pay in relation to the income earned. May be calculated based on the current monthly debt divided by gross monthly income.
Deposit This is the amount of money the customer pays to Wayne Homes before construction of a new home begins.
Dimensional Shingles Laminated shingles. Shingles that have added dimensionality because of extra layers or tabs, giving a shake-like appearance. May also be called "architectural shingles".
Doorjamb, Interior The surrounding case into which and out of which a door closes and opens. It consists of two upright pieces, called side jambs, and a horizontal head jamb. These 3 jambs have the "door stop" installed on them.
Dormer An opening in a sloping roof, the framing of which projects out to form a vertical wall suitable for windows or other openings.
Double Glass Window or door in which two panes of glass are used with a sealed air space between, it is also known as Insulating Glass.
Double Hung Window A window with two vertically sliding sashes, both of which can move up and down.
Down Payment The difference between the sales price and the mortgage amount. A down payment is usually paid at closing.
Downspout A pipe, usually of metal, for carrying rainwater down from the roof's horizontal gutters.
Drain Tile A perforated, corrugated plastic pipe laid at the bottom of the foundation wall and used to drain excess water away from the foundation. It prevents ground water from seeping through the foundation wall. Sometimes called perimeter drain.
Draw The amount of progress billings on a contract that is currently available to a contractor under a contract with a fixed payment schedule.
Drywall (or Gypsum Wallboard (GWB), Sheet rock or Plasterboard) Wall board or gypsum- A manufactured panel made out of gypsum plaster and encased in a thin cardboard. Usually 1/2" thick and 4' x 8' or 4' x 12' in size. The panels are nailed or screwed onto the framing and the joints are taped and covered with a 'joint compound'. 'Green board' type drywall has a greater resistance to moisture than regular (white) plasterboard and is used in bathrooms and other "wet areas".
Ducts The heating system. Usually round or rectangular metal pipes installed for distributing warm (or cold) air from the furnace to rooms in the home. Also a tunnel made of galvanized metal or rigid fiberglass, which carries air from the heater or ventilation opening to the rooms in a building.
Easement A formal contract which allows a party to use another party's property for a specific purpose. e.g. A sewer easement might allow one party to run a sewer line through a neighbors property.
Egress A means of exiting the home. An egress window is required in every bedroom and basement. Normally a 4' X 4' window is the minimum size required.
Electrical Final Work performed by the electrical contractor when the house is nearing completion. The electrician installs all plugs, switches, light fixtures, smoke detectors, appliance "pig tails", bath ventilation fans, wires the furnace, and "makes up" the electric house panel. The electrician does all work necessary to get the home ready for and to pass the municipal electrical final inspection.
Electrical Rough Work performed by the Electrical Contractor after the plumber and heating contractor are complete with their phase of work. Normally all electrical wires, and outlet, switch, and fixture boxes are installed (before insulation).
Equal Credit Opportunity Act (ECOA) This is a federal law that requires lenders to loan without discrimination based on race, color, religion, national origin, sex, marital status, age, income received from public assistance programs, or the fact that the applicant has exercised any right under the Consumer Credit Protection Act.
Equity The difference between the value of your home and the amount owed on it.
Equity The "valuation" that you own in your home, i.e. the property value less the mortgage loan outstanding.
Escrow The handling of funds or documents by a third party on behalf of the buyer and/or seller.
Fascia Horizontal boards attached to rafter/truss ends at the eaves and along gables. Roof drain gutters are attached to the fascia.
Federal Housing Administration (FHA) A federal agency, established by Congress in 1934, in order to make mortgage loans more affordable for consumers and investments more desirable for lenders. FHA-approved lenders may obtain insurance on mortgage loans that meet FHA standards.
Finance Charge The dollar amount the credit will cost you during the life of the loan.
Fixed Rate Mortgage A mortgage with an interest rate that remains the same over the years.
Fixed-Rate Mortgage A home loan whereby interest remains fixed for the entire loan term.
Flatwork Common word for concrete floors, driveways, basements and sidewalks.
Floor Plans A floor plan (floorplan) in architecture and building engineering is a diagram, usually to scale (generally 1:48 or 1:96), of the relationships between rooms, spaces and other physical features at one level of a structure. Usually the floor level.
Flue Large pipe through which fumes escape from a gas water heater, furnace, or fireplace. Normally these flue pipes are double walled, galvanized sheet metal pipe and sometimes referred to as a “B Vent”. Fireplace flue pips are normally triple walled. In addition, nothing combustible shall be within one inch from the flue pipe.
Footer, Footing Continuous 8" or 10" thick concrete pad installed before and supports the foundation wall or monopost.
Forced Air Heating A common form of heating with natural gas, propane, oil or electricity as a fuel. Air is heated in the furnace and distributed through a set of metal ducts to various areas of the house.
Foundation The supporting portion of a structure below the first floor construction, or below grade, including the footings.
Foundation Waterproofing High-quality below-grade moisture protection. Used for below-grade exterior concrete and masonry wall damp-proofing to seal out moisture and prevent corrosion. Normally looks like black tar.
Frontage The linear footage at the front of your property line.
Gable The end, upper, triangular area of a home, beneath the roof.
GF CI, or GFI Ground Fault Circuit Interrupter- an ultra sensitive plug designed to shut off all electric current. Used in bathrooms, kitchens, exterior waterproof outlets, garage outlets, and "wet areas". Has a small reset button on the plug
Good Faith Estimate A disclosure detailing the estimated closing/settlement costs.
Grade Ground level, or the elevation at any given point. Also the work of leveling dirt. Also the designated quality of a manufactured piece of wood.
Gross Monthly Income The total monthly income earned before deductions (taxes).
Grout A wet mixture of cement, sand and water that flows into masonry or ceramic crevices to seal the cracks between the different pieces. Mortar made of such consistency (by adding water) that it will flow into the joints and cavities of the masonry work and fill them solid.
Gutter A shallow channel or conduit of metal or wood set below and along the (fascia) eaves of a house to catch and carry off rainwater from the roof.
Hazard Insurance Protection against damage caused by fire, windstorms, or other common hazards. Many lenders require borrowers to carry it in an amount at least equal to the mortgage.
Hazard Insurance Insurance that protects against damage caused to property by fire, storm or other common hazards.
Header (a) A beam placed perpendicular to joists and to which joists are nailed inframing for a chimney, stairway, or other opening. (b) A wood lintel. (c) The horizontal structural member over an opening (for example over a door or window).
Hearth The fireproof area directly in front of a fireplace. The inner or outer floor of a fireplace, usually made of brick, tile, or stone.
Heat Final Work done by the Heating Contractor to get the home ready for the municipal Final Heat Inspection. This includes venting the hot water heater, installing all vent grills, registers, air conditioning services, turning on the furnace, installing thermostats, venting ranges and hoods, and all other heat related work.
Heat Pump A mechanical device which uses compression and decompression of gas to heat and/or cool a house.
Heat Rough Work performed by the Heating Contractor after the stairs and interior walls are built. This includes installing all duct work and flue pipes. Sometimes, the furnace and fireplaces are installed at this stage of construction.
Hip Roof A roof that rises by inclined planes from all four sides of a building.
Homebuilder / Wayne Homes We are the company that is responsible for hiring all of the necessary contractors, sub-contractors and construction staff responsible for completing your new home.
I-beam A steel beam with a cross section resembling the letter I. It is used for long spans as basement beams or over wide wall openings, such as a double garage door, when wall and roof loads bear down on the opening.
Insulation Any material high in resistance to heat transmission that, when placed in the walls, ceiling, or floors of a structure, and will reduce the rate of heat flow.
Interest The cost paid to a lender for borrowed money.
Interest The cost paid by a borrower for the use of money borrowed.
Jamb The side and head lining of a doorway, window, or other opening. Includes studs as well as the frame and trim.
Joist Wooden 2 X 8's, 10's, or 12's that run parallel to one another and support a floor or ceiling, and supported in turn by larger beams, girders, or bearing walls.
Lien An encumbrance that usually makes real or personal property the security for payment of a debt or discharge of an obligation.
Load Bearing Walls Includes all exterior walls and any interior wall that is aligned above a support beam or girder. Normally, any wall that has a double horizontal top plate.
Loan A sum of money given to an individual with the intent that it is to be repaid at some future date along with any agreed upon interest.
Loan To Value The total amount of the loans (mortgages) divided by the market value (i.e., the appraised value).
Loan To Value Ratio The ratio of the loan amount to the property valuation and expressed as a percentage. E.g. if a borrower is seeking a loan of $200,000 on a property worth $400,000 it has a 50% loan to value rate. If the loan were $300,000, the LTV would be 75%. The higher the loan to value, the greater the lender's perceived risk. Loans above normal lending LTV ratios may require additional security.
Lot The lot refers to the entire property or parcel where the home will be built, including any easements. The lot size is typically expressed in terms of square feet, linear feet or acreage.
Mantel The shelf above a fireplace opening. Also used in referring to the decorative trim around a fireplace opening.
Masonry Stone, brick, concrete, hollow-tile, concrete block, or other similar building units or materials. Normally bonded together with mortar to form a wall.
Mechanics Lien A lien on real property, created by statue in many years, in favor of persons supplying labor or materials for a building or structure, for the value of labor or materials supplied by them. In some jurisdictions, a mechanics lien also exists for the value of professional services. Clear title to the property cannot be obtained until the claim for the labor, materials, or professional services is settled. Timely filing is essential to support the encumbrance, and prescribed filing dates vary by jurisdiction.
Mortgage A formal document executed by the owner of property, pledging that property, as security for the repayment of a debt or the performance of some other obligation.
Mortgage Deed Legal document establishing a loan on property.
Mortgage Loan A contract in which the borrower's property is pledged as collateral. It is repaid in installments. The mortgagor (buyer) promises to repay principal and interest, keep the home insured, pay all taxes and keep the property in good condition.
Mortgage Origination Fee A charge for work involved in preparing and servicing a mortgage application (usually one percent of the loan amount).
Mortgage Origination Fee A charge by the lender for the work involved in the preparation and servicing of a mortgage request.
Municipal Requirements and Building and Zoning By-laws These are laws and restrictions, passed by the city, county or other government agencies to which every homebuilder must adhere.
Newel Post The large starting post to which the end of a stair guard railing or balustrade is fastened.
Nonbearing Wall A wall supporting no load other than its own weight.
Oriented:Strand Board or OSB A manufactured 4' X 8' wood panel made out of 1"- 2" wood chips and glue. Often used as a substitute for plywood.
Outstanding Items After your pre-delivery inspection, there may be a list of items that you feel need refinements or were missed during the construction process. These items are called "outstanding items" and are typically completed before closing.
Permit A governmental municipal authorization to perform a building process as in:

Zoning\Use permit - Authorization to use a property for a specific use e.g. a garage, a single family residence etc.
Septic permit - A health department authorization to build or modify a septic system.
Building permit - Authorization to build or modify a structure.
Electrical permit - A separate permit required for most electrical work.
Plumbing permit - A separate permit required for new plumbing and larger modifications of existing plumbing systems.
Pitch The incline slope of a roof or the ratio of the total rise to the total width of a house, i.e., a 6-foot rise and 24-foot width is a one-fourth pitch roof. Roof slope is expressed in the inches of rise, per foot of horizontal run.
PITI Principal, interest, taxes and insurance (the four major components of monthly housing payments).
Plenum The main hot-air supply duct leading from a furnace.
Plot Plan An overhead view plan that shows the location of the home on the lot. Includes all easements, property lines, set backs, and legal descriptions of the home. Provided by the surveyor.
Plumbing Final Work performed by the plumbing contractor to get the home ready for a final plumbing inspection. Includes installing all toilets (water closets), hot water heaters, sinks, connecting all gas pipe to appliances, disposal, dishwasher and all plumbing items.
Plumbing Rough Work performed by the plumbing contractor after the Rough Heat is installed. This work includes installing all plastic ABS drain and waste lines, copper water lines, bath tubs, shower pans, and gas piping to furnaces and fireplaces. Lead solder should not be used on copper piping.
Principal The original amount of the loan, the capital.
Principal The actual amount of money borrowed that is expected to be repaid over an agreed period of time. This is the amount of the loan, not including interest.
Purchase Price The original price the borrower paid for the mortgaged property
R Factor or Value A measure of a materials resistance to the passage of heat. New homewalls are usually insulated with 4" of batt insulation with an R value of R-13, and a ceiling insulation of R-30.
R Value A measure of insulation. A measure of a materials resistance to the passage of heat. The higher the R value, the more insulating "power" it has. For example, typical new home's walls are usually insulated with 4" of batt insulation with an R value of R-13, and a ceiling insulation of R-30.
Raised Ranch / Split level When you enter a raised ranch or split level home, you step into a foyer landing area and then go up or down a half flight of stairs. The main floor of this style of home is raised about four feet higher than a single story, and the lowest level is not set as far down into the ground as a basement.
Riser Each of the vertical boards closing the spaces between the treads of stairways.
Roof Sheathing or Sheeting The wood panels or sheet material fastened to the roof rafters or trusses on which the shingle or other roof covering is laid.
Rough Opening The horizontal and vertical measurement of a window or door opening before drywall or siding is installed.
Sales Contract A contract between a buyer and seller which should explain: (1) What the purchase includes, (2) What guarantees there are, (3) When the buyer can move in, (4) What the closing costs are, and (5) What recourse the parties have if the contract is not fulfilled or if the buyer cannot get a mortgage commitment at the agreed upon time.
Septic System An on site waste water treatment system. It usually has a septic tank which promotes the biological digestion of the waste, and a drain field which is designed to let the left over liquid soak into the ground. Septic systems and permits are usually sized by the number of bedrooms in a house.
Settlement Shifts in a structure, usually caused by freeze-thaw cycles underground.
Sewer Tap The physical connection point where the home's sewer line connects to the main municipal sewer line.
Sheathing, Sheeting The structural wood panel covering, usually OSB or plywood, used over studs, floor joists or rafters/trusses of a structure.
Shingles Roof covering of asphalt. asbestos, wood, tile, slate, or other material cut to stock lengths, widths, and thickness.
Shoe Mold Molding used next to the floor on interior base board.
Shutter Usually lightweight louvered decorative frames in the form of doors located on the sides of a window. Some shutters are made to close over the window for protection.
Single Hung Window A window with one vertically sliding sash or window vent.
Soffit The area below the eaves and overhangs. The underside where the roof overhangs the walls. Usually the underside of an overhanging cornice.
Specifications or Specs A narrative list of materials, methods, model numbers, colors, allowances, and other details which supplement the information contained in the blue prints. Written elaboration in specific detail about construction materials and methods. Written to supplement working drawings.
Split-level Walkout Lot This type of lot allows a homeowner to walk out from the lower level of a home onto ground level. The grade is less steep than a conventional walkout lot.
Standard Specifications This term refers to all of the regular items that comprise a new home.
Storm Sewer A sewer system designed to collect storm water and is separated from the waste water system.
Subfloor The framing components of a floor to include the sill plate, floor joists, and deck sheeting over which a finish floor is to be laid.
Sump Pump A submersible pump in a sump pit that pumps any excess ground water to the outside of the home.
Title Evidence (usually in the form of a certificate or deed) of a person’s legal right to ownership of property.
Trim-Interior The finish materials in a building, such as moldings applied around openings (window trim, door trim) or at the floor and ceiling of rooms (baseboard, cornice, and other moldings). Also, the physical work of installing interior doors and interior woodwork, to include all handrails, guardrails, stair way balustrades, mantles, light boxes, base, door casings, cabinets, countertops, shelves, window sills and aprons, etc. Exterior - The finish materials on the exterior a building, such as moldings applied around openings (window trim, door trim), siding, windows, exterior doors, attic vents, crawl space vents, shutters, etc. Also, the physical work of installing these materials.
Truss An engineered and manufactured roof support member with "zig-zag" framing members. Does the same job as a rafter but is designed to have a longer span than a rafter.
Truth in Lending Act A federal law requiring a disclosure of credit terms using a standard format; intended to facilitate comparisons between the lending terms of financial institutions.
Underlayment A ¼" material placed over the subfloor plywood sheeting and under finish coverings, such as vinyl flooring, to provide a smooth, even surface. Also a secondary roofing layer that is waterproof or water-resistant, installed on the roof deck and beneath shingles or other roof-finishing layer.
Variable Rate An interest rate that will vary over the term of the loan.
Variable Rate Mortgage A mortgage in which the loan rate changes during the life of the loan, usually at one, three, or five year intervals. Changes are governed by the movement of an index, such as the Treasury bill, Treasury securities index, or a national or regional average cost of funds index.
Walk-Through A final inspection of a home before "Closing" to look for and document problems that need to be corrected.
Warranty In construction there are two general types of warranties. One is provided by the manufacturer of a product such as roofing material or an appliance. The second is a warranty for the labor. For example, a roofing contract may include a 20 year material warranty and a 5 year labor warranty. Many new homebuilders provide a one year warranty. Any major issue found during the first year should be communicated to the builder immediately. Small items can be saved up and presented to the builder for correction periodically through the first year after closing.
Wind Bracing Metal straps or wood blocks installed diagonally on the inside of a wall from bottom to top plate, to prevent the wall from twisting, racking, or falling over "domino" fashion.
Zoning A governmental process and specification which limits the use of a property e.g. single family use, high rise residential use, industrial use, etc. Zoning laws may limit where you can locate a structure. Also see building codes.