Home Buyer And Home Design Terms And Definitions
Article by: Mark Mathis
When you start shopping for a new home, , Save Money On Improvement Projects you may encounter some words and terms with which you are unfamiliar. The following glossary will help you to be a better informed shopper.
Adjustable Rate Mortgage (ARM) - A loan whose interest rate is adjusted according to movements in the financial market.
Amortization - A payment plan , Earthworm Friends in the Garden by which a borrower reduces a debt gradually through monthly payments of principal and interest.
Annual Percentage Rate (APR) - The annual , Finding the right Snow Blower for you! cost off credit over the life of a loan, including interest, service charges, points, loan fees, mortgage insurance, and other items.
Appraisal - An evaluation to determine what a piece of property , Baby Boomer’s Demand Alternative Style would sell for in the marketplace.
Appreciation - The increase in the value of a property. , Teak Garden Furniture - A Lasting Value
Assessment - A tax levied on a property , A Guide to Commercial Awnings or a value placed on the worth of property , Water Conservation For Gardeners by a taxing authority.
Assumption - A transaction allowing the buyer of a home , A Beginners Guide To Garden Bridges to assume responsibility for an existing loan on the home , Lawn Mower Parts Overview instead of getting a new loan.
Balloon - A loan which has a series of monthly payments (often for 5 years or less) with the remaining balance due in a large lump sum payment at the end.
Binder - A receipt for a deposit paid to secure the right to purchase a home , Decorating with Authentic Zebra Decor.... at terms agreed upon by the buyer and seller.
Buydown - A subsidy (usually paid by a builder or developer) to reduce the monthly payments on a mortgage loan.
Cap - A limit to the amount an interest rate or a monthly payment can increase for an adjustable rate loan either during an adjustment period or over the life of the loan.
Certificate of Occupancy - A document from an official agency stating that the property , Spring Into Action: Home Maintenance meets the requirements of local , Container Gardening in the Metro codes, ordinances, and regulations. , Simple balcony makeover
Closing - A meeting to sign documents which transfer property , Lawn Mower Parts Overview from a seller to a buyer. (Also called settlement)
Closing Costs - Charges paid at settlement for obtaining a mortgage loan and transferring real estate title.
Conditions, Covenants, and Restrictions (CC and Rs) - The standards that define how a property , September Gardening Tips may be used and the protections the developer has made for the benefit of all owners in a subdivision.
Condominium - A home , Rose Pruning Tips in a multi-unit complex; each purchaser owns an individual unit, and all the purchasers jointly own the common areas, such as the surrounding land, hallways, etc.
Conventional Loan - A mortgage loan not insured by a government agency (such as FHA or VA).
Convertibility - The ability to change , Vegetable Gardening Tips a loan from an adjustable rate schedule to a fixed rate schedule.
Cooperative - A form of ownership in a multi-unit complex; the purchasers own shares of the entire complex rather than owning individual units.
Credit Rating - A report ordered by a lender from a credit bureau to determine if the borrower is a good credit risk.
Default - A breach of a mortgage contract (such as not making monthly payments).
Density - The number of homes , Improve Your 's Landscape in 6 Easy Steps built on a particular acre of land. Allowable densities are usually determined by local , Growing White Pine Trees In The Harrisburg Pa. Area jurisdictions.
Downpayment - The difference between the sales price and the mortgage amount on a home. , How to Build a Shed The downpayment is usually paid at closing.
Due-on-Sale - A clause in a mortgage contract requiring the borrower to pay the entire outstanding balance upon sale or transfer of the property. , Finding the right Snow Blower for you! A mortgage with a due-on-sale clause is not assumable.
Earnest Money - A sum paid to the seller to show that a potential purchaser is serious about buying.
Easement - Right-of-way granted to a person or company authorizing access to the owner's land; for example, a utility company may be grated an easement to install pipes or wires. An owner may voluntarily grant an easement, or in some cases, be compelled to grant one by a local , The Zen Of Charm Bracelets jurisdiction.
Equity - The difference between the value of a home , Save Money On Improvement Projects and what is owed on it.
Escrow - The handling of funds or documents by a third party on behalf of the buyer and/or seller.
Federal Housing Administration (FHA) - A federal agency which insures mortgages that have lower downpayment requirements than conventional loans.
Fixed Rate Mortgage - A mortgage whose interest rate remains constant over the life of the loan. The payments are not necessarily level. (See Graduated Payment Mortgage and Growing , Decorating with Authentic Zebra Decor.... Equity Mortgage).
Fixed Schedule Mortgage - A mortgage whose payment schedule for the life of the loan is established at closing. The payments and interest rate are not necessarily level.
Graduated Payment Mortgage (GPM) - A fixed-rate, fixed-schedule loan which starts with lower payments than a level payment loan; the payments rise annually over the first 5 to 10 years and then remain constant for the remainder of the loan. GPMs involve negative amortization.
Growing Equity Mortgage (Rapid Payoff Mortgage) - A fixed-rate, fixed-schedule loan which starts with the same payments as a level payment loan; the payments rise annually, with the entire increase being used to reduce the outstanding balance. No negative amortization occurs, and the increase in payments may enable the borrower to pay off a 30-year loan in 15 to 20 years, or less.
Hazard Insurance - Protection against damage caused by fire, , Details Of Lawn Mower Batteries windstorm, or other common hazards. Many lenders require borrowers to carry it in an amount at least equal to the mortgage.
Housing Finance Agency - A state agency which offers a limited amount of below-market-rate home , Bluebirds financing for low-and moderate-income households. , Save Money On Home Improvement Projects
Index - The interest rate or adjustment standard which determines the changes , Selling Your House? Trim Your Shrubs! in monthly payments for an adjustable rate loan.
Infrastructure - The public facilities and services needed to support residential development, including highways, bridges, schools, and sewer and water , Heirloom Decorating systems
Interest - The cost paid to a lender for the use of borrowed money.
Joint Tenancy - A form of ownership by which the tenants own a property , Save Money On Home Improvement Projects equally. If one dies, the other would automatically inherit the entire property. , Decorating with Authentic Zebra Decor....
Level Payment Mortgage - A mortgage whose payments are identical for each month over the life of the loan.
Mortgage Broker - A broker who represents numerous lenders and helps consumers find affordable mortgages; the broker charges a fee only if the consumer finds a loan.
Mortgage Commitment - A formal written communication by a lender, agreeing to make a mortgage loan on a specific property, , Mini Roses Are Going To Change The Look Of Your Home specifying the loan amount, length of time and conditions.
Mortgage Company (Mortgage Banker) - A company that borrows money from a bank, lends it to consumers who want to buy homes, , How Do I Make My Dozen Roses Look Right? then sells the loans to investors.
Mortgagee - The lender who makes a mortgage loan.
Mortgage Loan - A contract in which the borrower's property , Save Money On Home Improvement Projects is pledged a s collateral and which can be repaid in installments over a long period. The mortgagor (buyer) promises to repay principal and interest, to keep the home , A Beginners Guide To Garden Bridges insured, to pay all taxes, and to keep the property , Decorating with Authentic Zebra Decor.... in good condition.
Mortgage Origination Fee - A charge by a lender for the work involved in preparing and servicing a mortgage application (usually 1 percent of the loan amount).
Negative Amortization - An increase in the outstanding balance of a loan when a monthly payment is not large enough to cover all of the interest due.
Note - A formal document showing the existence of a debt and stating the terms of repayment.
PITI - Principal, interest, taxes, and insurance (the 4 major components of monthly housing payments).
Point - A charge of 1 percent of the mortgage amount. Points are a one-time charge assessed by the lender at closing to increase the interest yield on a mortgage loan.
Prepayment - Payment of all or part of a debt prior to its maturity.
Principal - The amount borrowed in a loan, excluding interest and other charges.
Property Survey - A survey to determine the boundaries of your property. , The Best Time to Inspect: Part 2 The cost will depend on the complexity of the survey.
Rapid Payoff Mortgage - (See Growing , Container Gardening in the Metro Equity Mortgage).
Recording Fee - A charge for recording the transfer of a property, , Decorating with Authentic Zebra Decor.... paid to a city, county, or other appropriate branch of government.
Real Estate Settlement Procedures Act (RESPA) - A federal law requiring lenders to provide home , How to Build a Shed buyers with information , Mini Roses Are Going To Change The Look Of Your Home about known or estimated settlement costs. The act also regulates other aspects of settlement procedures.
R-Value - The resistance of insulation material (including windows) to heat , The Lesson of the Morning Glory passing through it. The higher the number, the greater the insulating value.
Sales Contract - A contract between a buyer and seller which should explain, in detail, exactly what the purchase includes, what guarantees there are, when the buyer can move in, what the closing costs are, and what recourse the parties have if the contract is not fulfilled or if the buyer cannot get a mortgage commitment at the agreed-upon terms.
Settlement - (See Closing).
Shared Appreciation Mortgage - A loan in which partners agree to share specified portions of the downpayment, monthly payment, and appreciation.
Tenancy in Common - A form of ownership in which the tenants own separate but equal parts. To inherit the property, , Finding the right Snow Blower for you! a surviving tenant would either have to be mentioned in the will or, in the absence of a will, be eligible through state inheritance laws.
Title - Evidence (usually in the form of a certificate or deed) of a person's legal right to ownership of a property. , Decorating with Authentic Zebra Decor....
Transfer Taxes - Taxes levied on the transfer of property , A Beginners Guide To Garden Bridges or on real estate loans by state and/or local , So You Decided To Remodel Your Bathroom jurisdictions.
Veterans Administration (VA) - A federal agency which insures mortgage loans with very liberal downpayment requirements for honorably discharged veterans and their surviving spouses.
Walk-Through - A final inspection of a home , Baby Boomer’s Demand Alternative Style before settlement to search for problems that need to be corrected before ownership changes , A Guide to Commercial Awnings hands.
Warranty - A promise, either written or implied, that the material and workmanship of a product , Container Gardening in the Metro is defect-free or will meet a specified level of performance over a specified period of time. Written warranties on new homes , Lawn Mower Parts Overview are either backed by insurance companies or by the builders themselves.
Zoning - Regulations , Planting White Pine Seedlings established by local , How to Build a Shed governments regarding the location, , So You Decided To Remodel Your Bathroom height, and use for any given piece of property , Tips for Backyard Fish Ponds Care within a specific area.
For more information, , How To Choose Great Bathroom Light Fixtures be sure to visit us online , Spring Into Action: Home Maintenance at http://www.houseplancentral.com.
About the Author: Mark Mathis is a building designer , Rose Pruning Tips and publisher of several stock house , Finding the right Snow Blower for you! plan websites and informational resources including http://www.HousePlanCentral.com,
http://www.HousePlanGallery.com, and http://www.moneytalks-bswalks.com. Be sure to visit each site and subscribe to our eNewsletters to receive special offers, promotions, and subscriber-only features. , Teak Garden Furniture - A Lasting Value
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