Man-made amenities include swimming pools, tennis courts, community buildings, and other recreational facilities.Īmortization - The gradual repayment of a home loan by periodic installments.Īmortization Schedule - A timetable for payment of a home loan. Natural amenities include a pleasant or desirable location near water, scenic views, etc. ![]() To protect you in a rising interest market, rate increases are limited (usually 2 percentage points annually 6 percentage points over the life of the loan).Īmenity - A feature of real property that enhances its attractiveness and increases the occupant's or user's satisfaction, although the feature is not essential to the property's use. Your mortgage payments are adjusted up or down (usually on an annual basis) as the interest rate changes. An ARM is a mortgage with an interest rate that adjusts periodically to reflect changes in market conditions. Info provided by, Move Inc.Acceptance - A buyer's or seller's agreement to enter into a contract and be bound by the terms of the offer.Īdditional Principal Payment - A payment made by a borrower of more than the scheduled principal amount due, in order to reduce the outstanding balance on the loan, to save on interest over the life of the loan and/or pay off the loan early.Īdjustable Rate Mortgage (ARM) - stands for Adjustable Rate Mortgage, also referred to as a Variable Rate Mortgage. Short sales are an option homeowners use when the bank, credit union or other types of lenders they have borrowed from provides them with the option of selling their home to a third party at a price that is much lower than what they actually still owe on the note of their home loan. Short Sale: A process that is often used by homeowners who are trying to avoid getting caught up in a foreclosure. Lock Box: A locked key-holding device affixed to a for-sale home so real estate professionals can gain entry into the home after obtaining permission from the listing agent Listing: A provision of an agreement that keeps the agreement from being fully legally binding until a certain condition is met. HDW, HWF, Hdwd: Refers to hardwood floors This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt. Closing costs are generally paid through escrow.ĬMA (Competitive market analysis): A CMA is a report that shows prices of homes that are comparable to a subject home and that were recently sold, are currently on the market or were on the market, but not sold within the listing period.Ĭontingency: A provision of an agreement that keeps the agreement from being fully legally binding until a certain condition is met.įoreclosure: The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. These costs include the brokerage commission, mortgage-related fees, escrow or attorney’s settlement charges, transfer taxes, recording fees, title insurance and so on. For example, a loan may be amortized as if it would be paid over a thirty year period, but requires that at the end of the tenth year the entire remaining balance must be paid.Ĭlosing Costs: This is the entire package of miscellaneous expenses paid by the buyer and the seller when the real estate deal closes. Usually, the borrower must “qualify” in order to assume the loan.īalloon Mortgage: A mortgage loan that requires the remaining principal balance be paid at a specific point in time. For example, if there is a home with 5 bedrooms and 4 bathrooms, you would call it a 5B/4BĪppraisal: A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.Īssumable Mortgage: A mortgage that can be assumed by the buyer when a home is sold. This term can be modified to the number of bed/baths in any home. The first (4B) being the number of bedrooms and the last (2B) being the number of bathrooms. Below are some common terms to get you up to speed.ĤB/2B: Refers to the number of bedrooms and bathrooms. Realtors often use jargon or acronyms that are unfamiliar to first-time buyers.
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