UNDERSTANDING MORTGAGE AND REAL ESTATE TERMS
The language of Real Estate and Mortgage Lending does not have to be confusing. Whether you are buying or selling a home, here are some real estate and mortgage terms you may be hearing. For specific interpretations of these terms you may wish to consult a lender or local Realtor or legal advisor.
ABSTRACT OF TITLE - A history of ownership of a property and any documents that effect the title during the ownership.
ADJUSTABLE RATE MORTGAGE (ARM) - A loan with an interest rate that fluctuates according to the movements of a predetermined index.
AGENT – A person licensed by the state to sell real estate through a real estate broker.
APPRAISER – An opinion by a licensed real estate appraiser about the fair market value of a home at a given time.
ASSUMABLE LOAN – An existing mortgage that can be taken over by the new buyer…usually on the same terms given to the original borrower.
BALLOON PAYMENT – A loan with monthly payments too low to pay off the balance in the specified term or length of the loan period. The balance must be paid in full when the loan comes due.
BROKER – A person who has a real estate broker’s license, who may not only make real estate transactions for others in exchange for a fee (or other consideration), but also may operate a real estate business and employ salespeople and other brokers.
CLEAR OR MARKETABLE TITLE – A title that doesn’t have any liens or claims against it that would keep it from being transferred or would put the buyer in a position to sue of property rights or be obligated for claims.
CLOSING OR SETTLEMENT – The meeting between seller and buyer when the property legally changes hands.
CLOSING COSTS – Expenses above and beyond the purchase price that buyers and sellers pay at closing.
DEED – The legal document that is used to transfer the title from one owner to another.
ERNEST MONEY – Money deposited by potential buyers to show their seriousness about buying.
As you can see, learning the language of real estate is complex and unique. That’s why it is always best to have a professional Realtor or Mortgage Lender help you get the house and loan to pay for it.
Next week we’ll continue with Fixed-Rate Mortgages, Liens, Equity, Points and many more terms you should know to help you get the home of your dreams.
Country Club Mortgage
559.734.5000 Central Valley Phone
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400 E. Main St. Suite 120 Visalia, CA 93291
6795 N. Palm, Suite 101 Fresno CA 93711
4211 Spring Tree Ln. Bakersfield CA 93314
1204 Nipomo St. San Luis Obispo CA 93401
NMLS # 293517 | DRE # 01474957
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