30-yr fixed 6.43% ▾ 0.06 wk
15-yr fixed 5.79% ▾ 0.04 wk
HELOC avg 7.90% — no change
Auto 60-mo new 6.82% ▴ +0.03 mo
Personal 24-mo 11.57% ▾ 0.12 qtr
Credit card APR 21.52% ▴ +0.09 qtr
as of Jul 2, 2026 · Federal Reserve / Freddie Mac via FRED (St. Louis Fed)
Glossary

Short sale

Selling a home for less than what is owed on the mortgage, with the lender's approval — an alternative to foreclosure.

A short sale happens when a homeowner owes more than the home is worth and the lender agrees to accept the sale proceeds as full or partial satisfaction of the mortgage, forgiving the shortfall rather than pursuing foreclosure. It takes lender approval and typically longer to close than a normal sale, but it does less damage to the seller's credit than a foreclosure and can let them buy again sooner. Any forgiven debt may be reported to the IRS as income unless an exclusion applies.

Ready to use it? See short sale in context →

Related terms

  • Hard inquiry A credit check triggered by a real application, which can cost a few points and stays on your report for two years.
  • Credit score A 300–850 number summarizing your credit risk. It is the single biggest lever on the rate a lender offers you.
  • Fixed rate An interest rate that never changes for the life of the loan — your payment is the same every month.
  • Secured A loan backed by an asset the lender can seize if you default — a house, a car, or a deposit.
  • Deed of trust A three-party document (borrower, lender, trustee) some states use instead of a mortgage to secure a home loan against the property.
  • APR Annual percentage rate — the interest rate plus mandatory fees, expressed as one yearly cost. The only honest way to compare two loan offers.

← All loan terms