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Real Estate Information
Glossary of Real Estate Terms
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The ever changing world of real estate can often be confusing, which is why many people rely on real estate agents to deal with the ins and outs of buying or selling a home. Our experienced Real Estate Agents North Carolina can help you with everything from Real Estate Boone NC to Land in Boone NC. We can help you find the best Schools in Boone NC for your kids and the most suitable communities for your lifestyle. We also have Purchasing Real Estate Tips for buyers and Real Estate Selling Tips for sellers, and can even help you with our Free Housing Market Analysis and Home Mortgage Rate Calculators. One of the most confusing things about real estate is the vocabulary that is associated with it. For this reason, we’ve also provided you with a Glossary of Real Estate Terms that can help you better understand the inner workings of the world of Boone North Carolina Real Estate.
List of Terms
Definition of Terms
- Adjustable Mortgage Rate Loans: Also called adjustable rate loans and adjustable rate mortgages, this term is used to describe mortgage loans under which the interest rate is periodically adjusted to coincide with current trends. The amounts and time of adjustment are agreed upon at the inception of the loan.
- Amortization: The repayment of a debt through monthly installments of principal interest. This monthly payment is based on a schedule that allows buyers to own Boone NC Homes for Sale at the end of a specific period.
- Annual Percentage Rate: The cost of the loan expressed as a yearly interest rate, it includes interest, points, mortgage insurance, and other fees associated with the loan.
- Buyer’s Agents: The licensed North Carolina Real Estate Agents who represents the buyer of Land in Boone NC or Boone NC Homes for Sale.
- Buydown: A payment to the lender from the seller, buyer, or third party, or some combination thereof that causes the lender to reduce the interest rate during the early years of the loan.
- Cap: In an adjustable rate mortgage, the limit on how much the interest rate or monthly payment on Homes for Sale Boone NC can change.
- Closings: The final procedure in which documents are executed and/or recorded and the sale of Real Estate Boone NC is completed.
- Closing Statement: The statement which lists the financial settlement between buyers and sellers of Boone NC Homes for Sale and details the costs that each must pay.
- CMA (Competitive Market Analysis): A comparison of Boone N.C. Homes similar to a seller’s home in terms of size, style, features, and location that have sold recently or are currently on the market. CMAs are prepared by North Carolina Real Estate Agents to help determine an attractive listing price.
- Contingency: Something that must occur before a contract is binding.
- Deposit: A portion of the down payment given by the buyer to the seller or escrow agent with a written offer to purchase in order to show that the buyer is serious about purchasing Real Estate Boone NC.
- Down Payment: The cash portion of the total payment for Real Estate Boone NC, as opposed to the financed portion.
- Dual Agent: A licensed real estate agent who simultaneously represents the best interests of both the buyer and the seller. This term also applies to the buyer’s agent when the seller’s agent works for the same Boone North Carolina Real Estate company.
- Escrow: A procedure during which a neutral third party has possession of all funds, documents, and other materials necessary for the sale, with instructions from both the buyer and seller of Boone North Carolina Real Estate as to their use.
- FHA (Federal Housing Administration) Loan: An FHA loan is a loan insured by the Federal Housing Administration, which is a division of the Department of Housing and Urban Development. FHA insurance enables lenders to make loans to borrowers who might not qualify for conventional mortgages.
- Graduated Payment Mortgage: This type of mortgage initially offers buyers of Boone North Carolina Real Estate a low monthly payment that is set to increase at specified intervals to a predetermined rate.
- Hazard Insurance: More commonly referred to as homeowners insurance, hazard insurance is typically required by mortgage lenders and helps safeguard homeowners against the loss of their homes or possessions.
- Index or Rate Index: A measure of interest rate changes used to adjust the interest rate of an Adjustable Mortgage Loan.
- Lien: A legal claim or charge on Boone North Carolina Real Estate as security for payment of a debt or for the fulfillment of an obligation.
- Loan-to-Value Ratio: The percentage of the amount of a mortgage loan to the appraised value or selling price of Boone North Carolina Real Estate.
- Lockbox: A key storage system placed on a home entrance that is accessible only by active, licensed Real Estate Agents North Carolina who have sworn to abide by a strict set of guidelines when showing Real Estate Boone NC.
- Margin: In Adjustable Mortgage Loans, the number of percentage points the lender adds to the index rate to establish the new interest rate at each adjustment.
- MLS (Multiple Listing Service): A service why which member brokers collaborate in the sale of one another’s listings. Those selling Boone N.C. Homes for Sale may opt out of this service if they so choose.
- Mortgage Insurance (MIP or PMI): Borrowers purchase this kind of insurance in order to cover the lender or the government against loss should the borrower default. Mortgage Insurance Premium (MIP) is paid on government insured loans (FHA or VA) regardless of the Loan-to-Value Ratio. Private Mortgage Insurance (PMI) is paid on loans that are not government insured and have a LTV ration greater than 80%. When the borrower has accumulated 20% equity, the lender may drop the monthly PMI payments.
- PITI (Principal, Interest, Taxes, and Insurance): These are the four major items included in monthly mortgage payments on Boone NC Homes for Sale.
- Points: A fee charged by a lender as a service charge or as an amount needed to make the yield on a mortgage competitive with other types of investments. Each point represents 1% of the loan amount.
- Principal: The amount of debt, excluding interest, or the original amount of a loan.
- Second Mortgage: A mortgage which ranks after the first mortgage lien in priority.
- Seller’s Agents: Licensed Real Estate Agents North Carolina who help homeowners list and sell their Boone NC Homes for Sale. They help determine an attractive listing price, attract potential buyers, and assist with any necessary negotiations.
- Settlement: See definition of closing.
- Title Insurance: This type of insurance protects against claims as to ownership of the Real Estate Boone NC and/or defects in title.
- VA Loans: Special loans that enable veterans to buy Boone N.C. Homes for Sale with little or no down payment. These loans are partially backed by the Veterans Administration.
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