Real Estate Glossary: Terms starting with letter 'O'

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• Option:  The rights to buy, sell or lease a property at a certain price for a limited period of time. If the terms of the agreement allow it, the option itself may be bought or sold.

• 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. The origination fee is stated in the form of points. One point is 1 percent of the mortgage amount.

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