Glossary of commonly used terms and phrases

O

Oath - An affirmation that binds someone legally and morally.
top

Offset Statement - A statement by a lien holder to a buyer stating the balance due on existing liens against the property being purchased.
top

One-Year Adjustable - A mortgage program where the annual rate changes yearly.
top

Open-End Mortgage - A loan amount that can be increased upon mutual agreement of the lender and the borrower.
top

Operations and Maintenance Plan Program - A plan set forth to mitigate and remedy a known or potential environmental issue for instance, asbestos contamination. Oftentimes referred to as an "O&M plan."
top

Option - The right to buy or sell property or sign a contract, based upon certain terms and conditions. Usually applicable to specific time frames during which the 'option' may be exercised.
top

Original Principal Balance - The total amount of principal owed on a mortgage before any payments are made and without added interest.
top

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.
top

Owner Financing - A property purchase transaction in which the property seller provides all or part of the financing.
top

Owner Occupied - Means the property is the owner's primary residence.
top

Ownership - The right to enjoy and use property to the exclusion of others.
top