Glossary and Acronyms "O"

Original Principal Balance

The amount the borrower owes the lender on the origination date of the loan.

Origination

The date that the proceeds of a loan are disbursed.

Origination date

The date on which a loan is funded or disbursed.

Origination fee

A fee imposed by a lender to cover certain processing expenses in connection with making a mortgage loan. Usually a percentage of the amount loaned (often 1%). The origination fee is stated in the form of points. (Ref:   What are Loan origination fees?)

Owner financing

A property purchase transaction in which the property seller provides all or part of the financing.

Owner-Occupied

A property that the owner occupies as a principal residence.

Operating expenses

Costs associated with running or operating an investment fund. Operating expenses may include custody fees, management fees and transfer agent fees.

One Year Adjustment Rate Mortgage

A loan with a fixed rate for the first year that has a rate that changes yearly for the remaining life of the loan. (Ref: What is an Adjustable rate Mortgage? What are Payment options for an adjustable-rate mortgage? Explain Facts on margin with respect to adjustable-rate mortgages)

Open House

An Occasion when real estate offered for sale can be viewed by prospective buyers without an appointment.

Option Contract

An agreement between a buyer and seller that gives the purchaser of the option, the right to buy or sell a particular asset at a later date at an agreed upon price.

Option ARM

A type of adjustable-rate mortgage (ARM) that offers the borrower a choice of 4 monthly payment options to help provide financial flexibility to manage payments in rising rate markets and take advantage of falling interest rates. (Ref:  What is an Adjustable rate Mortgage? What are Payment options for an adjustable-rate mortgage? Explain Facts on margin with respect to adjustable-rate mortgages)