Home Buyer And Home Design Terms And Definitions

Article by: Mark Mathis

When you start shopping for a new home, , Landscape Gardening: Garden Paths 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 , Pest Control Tips for Maintaining Your Greenhouse by which a borrower reduces a debt gradually through monthly payments of principal and interest.

Annual Percentage Rate (APR) - The annual , Organizing Your Email 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 , Creating Your Own Garden in Small Places would sell for in the marketplace.

Appreciation - The increase in the value of a property. , House Plans – Where To Start

Assessment - A tax levied on a property , Variety In Garden Plants - How Much Is Too Much? or a value placed on the worth of property , Variety In Garden Plants - How Much Is Too Much? by a taxing authority.

Assumption - A transaction allowing the buyer of a home , Create And Enjoy A Hummingbird Paradise to assume responsibility for an existing loan on the home , “How to” for Lawns – Mowing 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 , Tips for Planting Flower Bulbs 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 , If you are chasing the most up-to-date assistance regarding meets the requirements of local , Landscape Gardening: Garden Paths codes, ordinances, and regulations. , Deck Building Basics

Closing - A meeting to sign documents which transfer property , 5 Steps To A Better Lawn And Garden 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 , Tips for Clay Soils Near Yardley Boro Pa. may be used and the protections the developer has made for the benefit of all owners in a subdivision.

Condominium - A home , Finding Structural Problems During Escrow – Upscale Exa 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 , A Nostalgic Flashback Of The 1950s Era 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 , Pest Control Tips for Maintaining Your Greenhouse built on a particular acre of land. Allowable densities are usually determined by local , Working with dahlias jurisdictions.

Downpayment - The difference between the sales price and the mortgage amount on a home. , 10 Tips On Cutting Plywood Correctly 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. , CHOOSE THE RIGHT PATIO FURNITURE FOR YOUR STYLE 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 Secrets Of Winterizing Your Garden jurisdiction.

Equity - The difference between the value of a home , Make you'r look good with a floor rug 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 , A Look at Retractable Awnings 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, , If you are chasing the most up-to-date assistance regarding 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 , 10 Tips On Cutting Plywood Correctly financing for low-and moderate-income households. , Housing preservation grants

Index - The interest rate or adjustment standard which determines the changes , Five Ways to Create a Healthy Home 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 , Deck Building Basics 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 , Seeking the best sourced assistance relating to bedroom deco equally. If one dies, the other would automatically inherit the entire property. , Five Ways to Create a Healthy Home

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, , Top 5 New Plants for Your Garden 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, , Winter Care For Wild Birds then sells the loans to investors.

Mortgagee - The lender who makes a mortgage loan.

Mortgage Loan - A contract in which the borrower's property , Don't Lose Your Cool When Selecting An Air Conditioning C 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 , Create And Enjoy A Hummingbird Paradise insured, to pay all taxes, and to keep the property , Make your Hardwood floor Dazzle 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. , Flowers That Beautify Your Home and Garden The cost will depend on the complexity of the survey.

Rapid Payoff Mortgage - (See Growing , My Garden Soul-The Agonies of Our Delightful Addiction Equity Mortgage).

Recording Fee - A charge for recording the transfer of a property, , Five Ways to Create a Healthy Home 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 , Deck Building Basics buyers with information , Do You Make These Window Replacement Mistakes? 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 , How Much Your Appliances Cost to Operate 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, , Tips For Successful Backyard Grape Growing 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. , The Secrets Of Winterizing Your Garden

Transfer Taxes - Taxes levied on the transfer of property , Finding Structural Problems During Escrow – Upscale Home Exa or on real estate loans by state and/or local , 5 Steps To A Better Lawn And Garden 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 , If you are chasing the most up-to-date assistance regarding before settlement to search for problems that need to be corrected before ownership changes , Winter Care For Wild Birds hands.

Warranty - A promise, either written or implied, that the material and workmanship of a product , Creating Your Own Garden in Small Places is defect-free or will meet a specified level of performance over a specified period of time. Written warranties on new homes , Create And Enjoy A Hummingbird Paradise are either backed by insurance companies or by the builders themselves.

Zoning - Regulations , If you are chasing the most up-to-date assistance regarding established by local , The versatile reciprocating saw. The power tool of your drea governments regarding the location, , Tips for Clay Soils Near Yardley Boro Pa. height, and use for any given piece of property , Tips for Planting Flower Bulbs within a specific area.

For more information, , Organizing Your Email be sure to visit us online , CHOOSE THE RIGHT PATIO FURNITURE FOR YOUR STYLE at http://www.houseplancentral.com.

About the Author: Mark Mathis is a building designer , The Best Flowers For Spring and publisher of several stock house , Ceiling Fans – That Don’t Require The Ceiling 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. , The American Arborvitae Grows well in Fountainville Pa.

Source: www.isnare.com

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