Adjustable-Rate Mortgage (ARM)
A loan with an interest rate that changes periodically in keeping with a current index, such as one-year treasury bills.
Agreement of Sale
A contract where a seller agrees to sell and a buyer agrees to buy, under specific terms and conditions spelled out in writing and signed by both parties.
Paying off debt with installments, where the installments can be either a series of equal payments or, more commonly, a calculated schedule of payments that includes accumulation of interest. This calculation process is also often used to determine usage and depreciation on assets.
Annual Percentage Rate (A.P.R.)
The interest percentage of a loan, including all finance charges and other payments and credits, averaged over the course of a year.
A process of evaluating, estimating or determining the value of property or assets. This term is often used when discussing property values and asset evaluation. In addition, a "performance appraisal" is a common term for regular overviews of an employee's work in a company, which frequently impact salary and bonuses.
A mortgage or trust deed that covers more than one lot or parcel of real property, and often an entire subdivision. As individual lots are sold, a partial re-conveyance or release from the blanket mortgage is usually obtained.
Certificate of Title
A document issued by a title company, registrar, or attorney stating that the ownership of a piece of property is vested as stated on the document.
The process of executing legally binding documents, such as deeds and mortgages commonly associated with the purchase of real estate and borrowing money to assist in the purchase. Also known as "escrow" or "settlement."
A formal written agreement by which title to real property is transferred from one owner to another.
A right-of-way granted to a person, organization, or government authorizing access to or over the owner's land.
Ownership in a corporation in the form of common or preferred stock. It also refers to total assets minus total liabilities, in which case it is referred to as shareholder's equity, net worth or book value.
Funds paid by one party to another to hold until the occurrence of an event, after which the funds are released to a designated individual.
Federal Housing Administration (FHA) Guarantee
An insurance contract in which FHA insures that the named lender will recover a specific percentage of the loan amount from the insurer in the event that the loan goes bad.
Unrestricted ownership of property, in which the owner has complete control, though the property is still subject to taxes.
A loan that carries an unchangeable interest rate over its entire term, typically a period of 15-30 years.
A proceeding to take away all rights, title, and interest of the owner of property in order to sell the property to satisfy a lien against it.
In real estate, disclosing all the known facts that may affect the decision of a buyer or tenant.
Real estate insurance protecting against loss caused by fire, some natural causes, vandalism, etc., depending on the terms of the policy.
U.S. Department of Housing and Urban Development. This federal department is responsible for the major housing programs in the United States, such as FHA.
An agreement by which an owner of real property gives the right of possession to another for a specified period of time and payment.
The price that a home will get on the market, based on comparisons to similar homes that have sold recently in the area.
A lien on real property that is given by the buyer to the lender as a security for money borrowed.
A person or company who negotiates mortgages for another person or company in order to receive a commission.
Insurance written by an independent mortgage insurance company that protects the mortgage lender against loss experienced by a mortgage default.
A circumstance that occurs when a loan payment is less than the principal and interest due on a loan.
Private Mortgage Insurance/P.M.I.
Insurance that is part of a mortgage contract to protect the lender.
Also called "real property," it is land and anything permanently attached to the land, such as buildings, fences and items that are attached to the buildings.
Real Estate Broker
A middleman or agent who purchase and puts up for sale real estate for a company, firm or individual in order to receive a commission.
The term for a professional real estate broker who is a member of a national association of realtors and who follows its rules and regulations.
The auctioning and sale of real estate for which the owner has not paid property taxes.