Adjustable-Rate Mortgage (ARM)
Interest rates on this type of mortgage are periodically adjusted up or down monthly, semi-annually, annually, or can remain fixed for a period of time before it adjusts.
A method of equalizing the monthly mortgage payments over the life of the loan, even though the proportion of principal to interest changes over time. In the early part of the loan, the principal repayment is very low, while the interest payment is very high. At the end of the loan, the relationship is reversed.
Annual Percentage Rate (APR)
An APR is an actual finance charge for a loan, including points and fees, in addition to the stated interest rate.
A real estate appraisal helps to establish a property’s market value – the likely sales price it would bring if offered in an open and competitive real estate market.
The value placed on a property by a municipality for purposes of levying taxes. It may differ widely from appraised or market value.
A large principal payment due all at once at the end of some loan terms.
A limit on how much the interest rate can change in an adjustable-rate mortgage.
Certificate Of Title
A document, signed by a title examiner, stating that a seller has an insurable title to the property.
The deed to a property is legally transferred from seller to buyer, and documents are recorded.
Costs associated with the closing of a home sale transaction, above and beyond the price of the property itself.
A fee (usually a percentage of the total transaction) paid to an agent or broker for services performed.
Comparative Market Analysis (CMA)
A survey of the attributes and selling process of comparable homes on the market or recently sold; used to help determine a correct pricing strategy for a seller’s property.
A condition in a contract that must be met for the contract to be binding.
A binding legal agreement between two or more parties that outlines the conditions for the exchange of value (for example: money exchanged for title to property).
A legal document that formally conveys ownership of a property from seller to buyer.