If you start shopping for a new home, you may encounter words and terms you are unfamiliar. The following glossary will help you make a more informed customers.

Adjustable Rate Mortgage (ARM) – A loan whose interest rate on movements of financial market

adjusted based.
Amortization – A payment plan by which a borrower reduces debt gradually through monthly payments of principal and interest

.
Annual Percentage Rate (APR) – The annual cost off credit over the term of a loan, including interest, service charges, points, loan fees, mortgage insurance and other products

.
An assessment to determine what a property would sell in the market

– Assessment.
Appreciation – An increase in the value of a property

.
Assessment – A tax on the property or a value placed on the value of property by a tax authority

.
Assumption – A business can take a home buyer to take responsibility for an existing loan on the house, rather than a new loan

.
Balloon – A loan that has a series of monthly payments (often for 5 years or less) with the balance of the payment of a substantial lump sum at the end

.
Binder – A receipt of a deposit paid, the right to a house with procedures established to ensure purchase of the buyer and seller

.
Buydown – A subsidy (usually paid by a builder or developer) to lower monthly payments on a mortgage

.
Cap – can increase a limit to the amount an interest rate or monthly payment from a variable rate loan either during an adjustment period or over the life of the loan

.
Certificate of Occupancy – A document from an official site mentioned that the requirements of local regulations, ordinances and regulations />

A meeting to sign documents that transfer property from a seller to a buyer - closing. (Also known as settlement)

Acquisition costs – costs incurred in the settlement for obtaining a mortgage loan and transferring real estate title

paid.
Conditions, covenants and restrictions (CC & Rs) – The standards that define how a property can be used and the protection the developer has done for the benefit of all owners in a different subdivision

.
Condominium – A house in a Multi-Unit has, each buyer a unique unit, and all buyers together their common areas, such as the surrounding land, hallways, etc.

Conventional Loan – A mortgage not insured by a government agency (such as FHA or VA)

.
Convertibility – The ability to get a loan from a variable-rate schedule change to a fixed scale

.
Cooperative – A form of property in a complex multi-unit purchasers own shares of the entire complex, instead of owning individual units

.
Rating – A report by a lender from a credit bureau commissioned to determine if the borrower is a good credit risk

.
Default – A breach of a mortgage contract (such as non payment of the monthly payments)

.
Density – The number of houses built on one hectare of land. allowable densities are usually determined by local jurisdictions.

Down payment – The difference between the sale price and the amount of the mortgage on a house. The deposit is usually paid at closing.

Due-on-sale – a clause in a mortgage contract requires the borrower’s outstanding balance upon sale or transfer of property to repay. A mortgage with a reason such a non-sale clause assumable.

A fee to show the seller that the prospective buyer is serious about buying

– Earnest Money.
Relief – the right of way granted to a person or company authorizing access to the landlord, for example, a utility to be installed in an easement to install pipes or son?. An owner may voluntarily grant a relief or required in some cases to grant a local jurisdiction.

Equity – The difference between the value of a house and what is owed on the

.
Escrow – The management of funds or documents

.
Federal Housing Administration (FHA) – A federal agency, the mortgage loans have lower cost conventional loans />

Fixed Rate Mortgage - A mortgage whose interest rate remains over the term of the loan. The payments are not necessarily level. (See Graduated Payment Mortgage Mortgage and Equity Growth).

Correction Annex Mortgage – A mortgage whose payment schedule for the term of the loan established at closing. Payments and interest are not necessarily level.

Graduated Payment Mortgage (GPM) – A fixed rate, fixed-rate loan schedule, with the lower payments of a loan payment level begins to rise, the payments annually over the first 5 to 10 years, then remains constant for the remainder of the loan. GPM include negative amortization.

Growing Equity Mortgage (Rapid Payoff Mortgage) – A fixed rate, fixed-rate loan schedule that begins with the same payments on a loan payment level rise, the payments per year, used with all of the increase in order to reduce the outstanding balance. No negative amortization occurs, and the increase in payments may enable the borrower to repay a loan over 30 years in 15 to 20 years or less.

Insurance risk – the protection against damage from fire, storm or other hazards the most common causes. Many lenders require borrowers to put it in an amount at least equal weight to the mortgage.

Housing Finance Agency – A government agency that provides a limited amount of housing finance below market interest rate for low-income households and

.
Index – The interest rate or adjustment standard which determines the development of the monthly payments for an adjustable rate loan

.
Infrastructure – The public facilities and services necessary to support residential development, including highways, bridges, schools and sewer and water

Interesting – The cost paid to a lender for the use of borrowed money

.
Condominium – A form of ownership in which the tenant and the property. When one dies, the other would automatically inherit the entire property.

Level payment mortgage – A mortgage whose payments are identical for each month throughout the loan term

.
Mortgage Broker – A broker who represents numerous lenders and helps consumers find affordable mortgages, the broker a fee only if the consumer credit

place.
Mortgage Commitment – A formal written notice from a lender to approve a mortgage on a specific property, specifying the loan amount, duration and conditions

.
Mortgage Company (Mortgage Banker) – A company that borrows money from a bank, lends it to consumers who want to buy the houses, then sells them to investors willing

.
Mortgagee – the lender under a mortgage

.
Mortgage – A contract in which the borrower’s property pledged as collateral and can be repaid in installments over a long period of time?. The mortgagor (buyer) agrees to principal and interest, to keep the home insured, pay taxes and keep the property in good condition to be repaid.

Credit Mortgage Fee – A charge by a lender for the work of preparation and servicing a mortgage application (usually 1 percent of the loan amount)

.
Negative amortization -. An increase in the outstanding balance of a loan to a monthly payment is not large enough to cover all interest due

cover
Note – A document on the existence of a liability and where the conditions for repayment

.
PITI – principal, interest, taxes /> and insurance (the 4 major components of monthly housing payments)
.
Point – A fee of 1 percent of the loan amount. Points are a charging time of the lender in closing a mortgage interest rate increase evaluated.

Prepayment – Payment of all or part of a debt prior to maturity

.
Principal – The amount for a loan, excluding interest and other charges

borrowed.
Property Survey – A survey to determine the boundaries of your property. The cost will depend on the complexity of the investigation.

Fast Mortgage Payoff – (see Equity Mortgage growth)

.
Application fee – A charge for recording the transfer of property that a city, county or other appropriate branch of government

.
Estate Settlement Procedure Act (RESPA) – A federal law requires lenders to buyers known information about the house, or to make estimated settlement costs. The law also regulates other aspects of settlement procedures.

R-Value – The resistance of insulation material (including Windows) to pass through it to heat. The higher the number, the greater the insulating value.

The sales contract – A contract between a buyer and seller which should explain in detail exactly what the purchase includes, what guarantees are there where the buyer can move in, what the closing, costs, and what recourse the parties if the contract is not completed or if the buyer does not obtain a mortgage commitment at the agreed on terms.

Regulation – (See Closing)

.
Shared appreciation mortgage – a loan in which the partners commit themselves to share certain parts of the deposit, the monthly payment and appreciation

.
Rental pool – a form of ownership, in which the tenants their separate but equal. To inherit the property, the surviving tenant would either have to be mentioned in or come in the absence of a will, considering the laws of succession of the state.

Title -? Evidence (usually in the form of a certificate or deed) of a person of property rights

.
Transfer taxes – taxes on the transfer of property or real estate loans made by state and / or local governments

.
Veterans Administration (VA) – A federal agency that insures mortgage loans with very liberal down payment requirements for honorably discharged veterans and their surviving spouses

.
-. Walk-through A final inspection of a house before the settlement in search of problems that must be corrected before ownership changes hands

Guarantee – a promise, either written or implied, that the material and producing a product free from defects or a specific service to meet over a period of time. written guarantees for new homes are either backed by insurance companies or the manufacturers themselves.

Zoning – Regulations of the local governments about the location, size and use of parcel of property in a specific area

established.
br =============================================
find your dream floor plan Interested?

Search hundreds of new designs:

Gallery House Plan />
View most popular floor plans at:

popular house plans and home plans

p =============================================
Condo Floor Plans