Here is where you will find all the information you need to know when Buying, Selling, or Building your own home.
Real Estate Terminology
- Adjustable Rate Mortgage (ARM): A mortgage loan with an interest rate that fluctuates in accordance with a designated market indicator, such as the weekly average of one-year U.S. Treasury Bills, over the life on the loan. To avoid constant and drastic fluctuations, ARMs typically limit how often and by how much the interest rate can vary.
- Amortization: The periodic payment of principal and interest on a liability, including mortgage, or the write-off of a non-depreciable asset over a scheduled term.
- Annual percentage Rate (APR): A yearly interest rate that includes upfront fess and costs paid to acquire the loan, calculated by taking the average compound interest rate over the term on the loan. Mortgage lenders are required to disclose APR so that borrowers can more accurately compare the actual cost of the different loans with different fees.
- Appraisal: A determination of the value of something. A professional appraiser, who should be qualified and disinterested specialist in real estate appraisals who has local expertise, makes an estimate. The estimate is made by examining the property, looking at the the initial purchase price, and comparing with with recent sales of similar property. Your bank or alternative lender will require the appraisal in order to determine the worth of the property for lending purposes.
- Assignment: The process by which a right or contract is transferred from one party to another.
- Closing Costs: All settlement or transactions charges that are above and beyond the actual cost of the property that home buyers or sellers need to pay at the close of escrow when the property is transferred. These typically include lender’s fees, credit check fees, deed filling fees, inspection and appraisal fees, and attorney’s fees. Some closing costs are tax deductible.
- Contingency: A provision in a contract stating that some or all of the terms of the contract will be altered or voided by the occurrence of a special event, usual by specific dates leading up to the closing.
- Contract: A legally binding agreement between two parties, and in order to have a valid Contract of Sale in Real Estate there must be: an offer, an acceptance, competent parties, consideration, legal purpose, written documentation, description of the property, and signatures of principals.
- Earnest Money Deposit (EMD): A partial payment (deposit) demonstration commitment in a contractual relationship and commonly made in real estate transactions at the time of making the purchase offer. The remainder of the payment is due on the closing date. The seller keeps the earnest money if the buyer fails to make timely payment in full of there is a breach in the agreement.
- Escrow: The holding of funds or documents by a neutral third party prior to closing your home sale.
- Fixed-Rate Mortgage: A mortgage loan that has a interest rate that remains constant throughout the life of the loan, usually 15-30 years.
- Multiple Listing Service: A computer-based service that provides Real Estate Professionals with detailed listings of most homes on the market. the public can now access much of this information through commonly used Real Estate websites.
- Principal: The amount that is borrowed and on which interest is paid or received in the mortgage.
- Zoning Ordinance: A statement settling forth the type of use permitted under each zoning and classification and specific requirements for compliance.