Mortgage Seasoning

Definition

The time period a loan must be held before it can be sold or refinanced—basically the financial equivalent of letting wine age.

Example Usage

Due to mortgage seasoning requirements, you'll need to wait six months before refinancing that FHA loan.

Origin

Banking terminology, formalized after the 2008 financial crisis

Fun Fact

Seasoning periods exist because lenders got tired of people refinancing five minutes after closing.

Source: Fannie Mae/Freddie Mac Guidelines

Related Terms

Intermediate

WAC

Walk-Away Cash—the net proceeds a seller receives after paying off mortgages, liens, commissions, and closing costs. It's the moment of truth when sellers discover whether they're taking home a check or writing one.

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entitlement

The legal right to develop land according to approved plans, secured through zoning approvals, permits, and regulatory compliance. Developers chase these permissions like dragons hoarding gold, because they dramatically increase land value.

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PMI (Private Mortgage Insurance)

Insurance protecting the lender when you put down less than 20%, essentially punishing you for not being wealthy enough.

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euclidean

Relating to the traditional geometry you suffered through in high school, where parallel lines never meet and the shortest distance between two points is a straight line. In real estate zoning, it refers to strict geometric separation of land uses—because apparently houses and corner stores can't peacefully coexist. Named after Euclid, the ancient Greek mathematician who never had to deal with modern city planning committees.

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seller carry

When a property seller provides financing to the buyer, essentially acting as the bank and holding a note secured by the property. It's the real estate version of 'I'll spot you until payday'—except with six-figure stakes and actual paperwork.

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Beginner

drive-by

A quick exterior assessment of a property from your vehicle, because sometimes you can tell from the street that 'charming fixer-upper' means 'condemned by next Tuesday.' It's the real estate version of swiping left.

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