O

Offer to Purchase
A document completed by a home buyer specifying the terms and conditions under which real estate will be purchased.

One-year Adjustable
Mortgage whose annual rate changes yearly. The rate is usually based on movements of a published index plus a specified margin, chosen by the lender.

Open-end Credit
A line of credit that may be used over and over again, including credit cards, overdraft credit accounts, and home equity lines.

Open-end Lease
A lease that may involve a balloon payment based on the value of the property when it is returned.

Open-End Mortgage
A mortgage with a provision that the outstanding loan amount may be increased upon mutual agreement of the lender and the borrower.

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

Origination
The process whereby the lender, or a servicing agent on behalf of the lender, handles the initial application processing and disbursement of loan proceeds.

Origination Fee
Fee, payable by the borrower and deducted from the principal of a loan prior to disbursement to the borrower. For federally-backed loans, the origination fee is paid to the federal government to offset the cost of the interest subsidy to borrowers. For private loan programs, the origination fee is generally paid to the originator to cover the cost of administering and insuring the program.

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

Owner-Occupied Property
The borrower or a member of the immediate family lives in the property as a primary residence.

Owner of Record
The individual named on a deed that has been recorded at the county recorders office.