Real Estate Glossary O

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original principal balance

The total amount of principal owed on a mortgage before any payments are made.

origination fee

A fee paid to a lender for processing a loan application, making a home loan, and recording a mortgage against the borrower's real property as security for repayment of the loan. The origination fee is stated in the form of points. One point is 1% of the mortgage amount (e.g., 1,000 on a $100,000 loan).

owner financing

A property purchase transaction in which the property seller provides all or part of the financing and takes back a security instrument.