REAL ESTATE TERMS YOU MAY WANT TO KNOW WHEN BUYING OR SELLING A HOME IN THE ORLANDO AREA
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currently, there are three companies that maintain national credit – reporting databases. These are Equifax, Experian, and Trans Union, referred to as Credit Bureaus.
amortization means that monthly payments are large enough to pay the interest and reduce the principal on your mortgage. Negative amortization occurs when the monthly payments do not cover all of the interest cost. The interest cost that isn’t covered is added to the unpaid principal balance. This means that even after making many payments, you could owe more than you did at the beginning of the loan. Negative amortization can occur when an ARM has a payment cap that results in monthly payments not high enough to cover the interest due.
Your take-home pay, the amount of money that you receive in your paycheck after taxes and deductions.
a refinance of an existing loan only for the amount remaining on the mortgage. The borrower does not get any cash against the equity of the home. Also called a “rate and term refinance.
there are many variations of a no cost loan. Generally, it is a loan that does not charge for items such as title insurance, escrow fees, settlement fees, appraisal, recording fees or notary fees. It may also offer no points. This lessens the need for upfront cash during the buying process however no cost loans have a higher interest rate.
an asset such as a mortgage that is not currently accruing interest or which interest is not being paid.
a legal document obligating a borrower to repay a mortgage loan at a stated interest rate over a specified period of time.
the interest rate stated on a mortgage note.
a formal written notice to a borrower that there is a default on a loan and that legal action is possible.
the proposed amount which interest rate swap payments are based but generally not paid or received by either party.
is a loan that exceeds Fannie Mae’s and Freddie Mac’s loan limits. Freddie Mac and Fannie Mae loans are referred to as conforming loans.
a person who serves as a public official and certifies the authenticity of required signatures on a document by signing and stamping the document.
Keep in mind that this is by no means a complete list of terms, but it does highlight most of the more common terms used in the industry and is a constant work in progress as time passes.
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