Title Insurance Dictionary-Glossary

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H

Hazard Insurance
A form of insurance in which the insurance company protects the insured from specified losses, such as fire, windstorm and the like.

Hedging
The matching of assets to liabilities of a similar nature; the assumption of one risk is calculated to offset another. In mortgage banking, the purchase or sale of mortgage futures contracts to offset market transactions to be made at a later date.

Hiatus
A gap or space left between two parcels of land and not included in the legal description of either parcel. Similar terms are Gaps and Gores.

Home Equity Loan
A loan that lets you borrow back money against the difference of what you own on your current home loan and the home's estimated sales price. People generally use home equity loans to get cash for large expenses like education, home improvement, or health care.

Homestead Deed
A declaration filed in the land records that an individual is asserting his homestead exemption. That exemption allows one to protect some assets (amount varies by state) against the claims of creditors.

Housing Expenses-to-Income Ratio
The ratio, expressed as a percentage, which results when a borrower's housing expenses are divided by his/her gross monthly income. See debt-to-income ratio.

Housing Ratio
The ratio, expressed as a percentage, which results when a borrower's housing expenses are divided by his/her gross monthly income. See debt-to-income ratio.