Real estate terminology is wide-reaching and comprehensive. Having a basic understanding of these terms will help you perform better in the real estate world. Here is a look at some of the popular terms associated with real estate
- ARM (Adjustable Rate Mortgage): ARMs are mortgages that are tied to indexes, according to which the interest rate of the mortgage changes periodically.
- Adjustment Date: This term is directly linked to ARMs (Adjustable Rate Mortgages) and refers to the date on which the interest rate of the ARM changes.
- Appraisal: If you want to buy a home, your lender will require this figure from you. This can be obtained with the help of a licensed appraiser who will determine the appraisal based on the prices of other homes of similar value.
- Closing costs: These are the costs that are incurred during the process of closing the deal. They include loan origination fee, processing fees, insurance for the title, tax, attorney’s fee etc.
- Contingencies: These refer to certain conditions that are put forward and must be fulfilled before the sale is finalized.
- Down payment: Down payment is the initial lump sum that is paid by the buyer as payment. It is excluded from the amount that is financed, and is a determining factor in the length of the loan as well as interest rate.
- Easement: It is a legal document authorizing someone other than the legal owner to have rights over the property.
- FHA mortgage: This is a mortgage that is given by the FHA (Federal Housing Administration). It is easy to qualify for such loans and have low down payment requirements.
- Foreclosure: Foreclosure is the legal term used for a situation in which a borrower defaults on his payments, and is thus deprived over the possession and rights on the property. A forced sale at a public auction is made and proceeds from the sale are used for paying off the mortgage debt.
- Lien: This is the right to hold one’s property until the conditions that caused the withholding are fulfilled.
- Mortgage: This is a legal document that gives the lender security by giving him rights to the property in case the borrower defaults on their payments.
For more information, contact Lone Star Realty & Property Management, Inc. We are located at 1020 W Jasper Drive, Killeen, TX 76542. You can also call us at (254) 699 – 7003.