Upgrade to remove ads
Real Estate Definitions
Terms in this set (44)
A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons .
The most common reason of accelerating a loan are if the borrower defaults on the loan or transfer title to another individual without informing the lender.
Adjustable-Rate- Mortgage ARM
A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes.
The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over tie, the interest portion decreases as the loan balance decrease, and the amount applied to principal increases so that the loan is paid off ( amortized) in the speciefeid time
Annual Percentage Rate (APR)
This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It works sort of like this, but not exactly, so only use this as a guideline: Deduct the closing cost from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead o your actual loan amount.
A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.
An opinion of a property fair market value, based on an appraiser knowledge, experience, and analysis of the property. Since an appraisal is based primiarlu on comparable sales, and the most recent sale is the one on the property in question, the appraisal usually comes out at the purchase price.
When ownership of your mortgage is transferred form one company or individual to another.
A mortgage loan that requires the remaining principal balance be paid at a specific point in time. 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 year the entire remaining balance must be paid
Bridge loan are obtained by those who have not yet sold their previous property, but must close on a purchase property. The bridge loan becomes the source of their funds for the down payment
a title that is free of liens or legal questions as to ownership of the property.
Cloud on title
any conditions revealed by a title search that adversely affect the title to real estate. Usually clouds on title cannot be removed except by deed, release, or court action.
A short-term, interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses.
Refers to home loans other than government loans (VA and FHA )
the legal document conveying title to a property
Deed of Trust
Some states, like California, do not record mortgages. Instead, they record a deed of trust which is essentially the same thing.
failure to make the mortgage payments within a specified period of time. For first mortgages or first trust deeds, if a payment has still not been made within 30 days of the due date, the loan is considered to be in default.
A deposti made by the potential home buyer to show the he or she is serious about buying the house.
A right of way giving persons other than the owner access to or over a property.
The right of government to tea e private property for public use upon payment of its fair market value. eminent Domain is the basic for condemnation proceedings.
an improvement that intrudes illegally on another property
Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.
A homeowners financial interest in a property. equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens.
An item of value, money , or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the earnest money deposit is put into escrow until delivered to the seller when the transaction is closed.
the ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death.
A person named in a will to administer an estate. The court will appoint an administrator if no executor is named.
Fair Market Value
The highest price that a buyer , willing but not compelled to buy , would pay and the lowest seller, willing but no compelled to sell, would accept.
The Federal national Mortgage Association. Which is congressionally charted, shareholder-owned company that is the nations largest supplier of home mortgage funds. For a discussion of the roles of Fannie Mae, Freddie Mac , Ginnie Mae
An agency of the U.S department of housing and Urban development (HUD) its main activity si the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting but does not lend money or plan or construct housing..
a mortgage that is insured by the federal housing administration. Along with VA loans, an FHA loan will often be referred to as a government loan
The mortgage that is in first place among any loans recored against a property. Usually refers to the date in which loans are recorded, but there are exceptions.
A mortgage in which the interest rate des not change during the entire term of the loan
Insurance that compensates for physical property damage resulting from flooding . It is required for properties located in federally designated flood areas.
Government National Mortgage Association
A government owned corporation within the US department of Housing and urban Development. Created by congress on September 1 1968, GNMA performs the same role as Fannie Mae and Freddie Mac in providing funds to lenders for making home loans. The different is that Ginnie Mae provides funs for government loans FHA VA
the person to whom an interest in real property is conveyed
The person conveying an interest in real property
Home Equity line of Credit
A mortgage loan, usually in second position , that allows the borrower to obtain cash drawn against the equity of his home, up to a predetermined amount.
A thorough inspection by a profession that evaluate the structural and mechanical condition of a property.
A nonprofit association that manages the common areas of planned unit development ( PUD or condominium project. In a condominium project, it has ownership interest in the common elements. in a PUD project , it holds title to the common elements.
HUD -settlement Statement
Documents that provides an itemized listing of the funds that were paid at closing. Items that appear on the statement include real estate commissions , loan fees,points, and initial escrow amounts. each type of expense goes on a specific numbered line on the sheet. The total at the bottom of the HUD statement define the sellers net proceeds and the buyer net payment at closing. It is called a HUD because the form is printed by the department of housing and urban Development HUD. The Hud statement is also known as the closing statement
a tule of foreclosure proceeding used in some states that is handled as a civil lawsuit and conducted entirely under the auspices of a court. Other states use non judicial foreclosure.
A property description , recognized by law, that is sufficient to locate and identify the property without oral testimony
A term which can refer to the institution making the loan or to the individual representing the firm. For example, loan officers are often referred to as lenders.
a persons financial obligations. liabilities include long term and short term debt, as well as any other amounts that are owed to others.
A legal claim against a property that must be paid off when the property is sold. A mortgage or first trust deed is considered a lien.
YOU MIGHT ALSO LIKE...
PSI Real Estate Vocabulary
Indiana Real Estate Exam
OTHER SETS BY THIS CREATOR
Real Property / Ownership
Title and Transfer
Real Estate Terms 1