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
Written justification of the price paid for a property; primarily based on an analysis of similar sales in the area
Opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analyisis of the property
Valuation placed on property due to changes in market conditions, inflations, or other causes
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
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
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
Condition that must be met before a contract is legally binding
Legal document conveying title to a property
Decline in the value of property
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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