|
|
 |
|
| |
|
|
| |
by Mark Mathis
|
|
print article · comment on article
|
|
| |
previous |
page 1 of 8 |
next |
|
| |
|
|
| |
When you start shopping for a new home, 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 by which a borrower reduces a debt gradually through monthly payments of principal and interest.
Annual Percentage Rate (APR) - The annual 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 would sell for in the marketplace.
Appreciation - The increase in the value of a property.
Assessment - A tax levied on a property or a value placed on the worth of property by a taxing authority.
Assumption - A transaction allowing the buyer of a home to assume responsibility for an existing loan on the home 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 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. |
|
| |
|
|
| |
previous |
1·2·3·4·5·6·7·8 |
next |
|
|
