When you go to sell or buy a home there are many terms you may not be familiar with. Understanding real estate vocabulary can help ensure you don't miss a thing. Here are the definintions of several common terms from realestateabc.com you may encounter throughout the process.
Adjustible- Rate Mortgage (ARM):
Mortgage in which interest rate changes periodically according to corresponding fluctuations in an index; all ARMs are tied to an index
Appraisal:
Written justification of the price paid for a property; primarily based on an analysis of similar sales in the area
Appraised Value:
Opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analyisis of the property
Assessed Value:
Valuation placed on property due to changes in market conditions, inflations, or other causes
Biweekly Mortgage:
Mortgage in which you make payments every two weeks, resulting in reducing the time it takes to pay off a mortgage compared to monhly payments
Broker:
In the mortgage industry, the term usually refers to a company or individual that does not lend the money for the loans themselves, but brokers the loans to larger lenders or investors
Closing Costs:
Non- recurring costs are any items paid just once as a result of buying a property or obtaining a loan; pre- paid items are items recur over time, such as property taxes
Contingency:
Condition that must be met before a contract is legally binding
Deed:
Legal document conveying title to a property
Depreciation:
Decline in the value of property
Down Payment:
Part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage
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