Real Estate and Mortgages
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24 terms
Terms | Definitions |
|---|---|
 Accelerated Payment | Making bi-weekly payments on your mortgage which makes one additional payment on your mortgage annually. |
| Appraisal | An estimate of the current value of the property. |
| Appreciation | a general increase in the value of property that occurs over time |
| ARM | An adjustable-rate mortgage where the interest rate varies with the current climate |
| Conventional Loan | Loan that is neither FHA nor VA; does not require insurance or guarantee, although today high LTV loans are made along with PMI (private mortgage insurance |
| Curb Appeal | The appearance of a home from the street. |
| Equity | the difference between the market value of a property and the claims held against it |
| FHA Loan | Loan insured by Federal Housing Administration; made by approved lender with FHA's regulation; borrowers pay mortgage insurance premium (MIP) |
| Fixed Rate | an interest rate that does not change over time. |
| Home Inspector | Someone who checks for problems with the building or perating systems of the building. |
| Home Warranty | an agreement that ensures the structural soundness of a home |
| Inflation Hedge | Common stock is an inflation hedge - we expect it to provide protection over time against inflation. |
| Interest Only Loan | has a repayment plan that calls for the borrower to pay interest each period and to repay the entire principal (the original loan amount) at some point in the future |
| Land Survey | an accurate measurement of the property, not a legal description of it |
| MLS | Computer program used by realtors to search frequently updated listings of available properties in order to find prospective homes for their clients. |
| Mortgage | a long-term loan extended to someone who buys property |
| Owner Financing | The seller is the primary lender securing his or her interest with the use of a deed, note and mortgage, deed of trust, or contract for deed. The buyer takes possession of the property, but the seller retains legal title until paid in full. 14:231 |
| PMI | Insurance required when 1st lien loan amount is greater than 80%of the puchase price or appraised value |
| Principal | The money originally invested or loaned, on which basis interest and returns are calculated |
| Realtor | A real estate broker holding active membership in a real estate board affiliated with the National Association of Realtors. |
| Reverse Mortgage | When the mortgagee makes regular monthly payments to the mortgagor. The payments create the loan. It is used for elderly people whose homes are paid off or nearly so. The debt is not repaid until they either sell the house or die. |
| Timeshare | A form of vacation property ownershp where a company sells a small segment of time to a customer. The use and costs of running the property are shared amoung all of the customers, now owners, who bought into the timeshare. |
| Title Insurance | a type of insurance that protects the buyer in case problems with the title are found later |
| VA Loan | A loan from Veterans Affairs; insures loans to people who have served in the military, with no down payment required |
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