Housing Vocab

Question 1

Amortization

Answer 1

Plan that allows you yo make regular payments to gradually reduce the principal amount of the debt

Question 2

Appraisal

Answer 2

an estimate on the value of property

Question 3

Certificate Of title

Answer 3

Written statement to determine ownership of the property.

Question 4

Leasing

Answer 4

Date title passes from seller to buyer

Question 5

Closing Costs

Answer 5

Fees in addition to the price of the property. Such fees include: title search, insurance, appraisal, surveys, attorney, & docum

Question 6

Commision

Answer 6

money paid to the real estate agent by the seller for finding a buyer and completing a sale.

Question 7

Deed

Answer 7

Formal document that transfers the title on property from one owner to another.

Question 8

Default

Answer 8

Failure by buyer to make payments on property as agreed.

Question 9

Depreciation

Answer 9

Amount house has declined in value

Question 10

Down payment

Answer 10

Money paid by buyer to the seller at the time they sign an agreement to sell.

Question 11

Earnest Money

Answer 11

Deposit given to seller by potential buyer to show you’re serious about buying. You don’t get the money back if you change your mind.

Question 12

Equity

Answer 12

Amount of property value that totally belongs to homeowner

Question 13

Escrow funds

Answer 13

Money or papers that represent unsettled financial transactions

Question 14

Foreclosure

Answer 14

Taking and selling mortgaged property in order to obtain payment on loan when buyer is in default.

Question 15

Interest

Answer 15

Charge paid for borrowing money

Question 16

Lien

Answer 16

legal claim placed in property by someone who wants payment for money due by owner

Question 17

Mortgage

Answer 17

Claim against property given to lender by buyer as security for money borrowed

Question 18

Mortgage note

Answer 18

Written agreement to repay loans

Question 19

Mortgagee

Answer 19

Lender of mortgage funds

Question 20

Mortgagor

Answer 20

Borrower of mortgage funds

Question 21

Plat

Answer 21

Map or chart made by surveyor to show exact boundaries of a piece of property

Question 22

Points

Answer 22

Fees charged by lender in addition to the amount of the mortgage. Is one percent of Mortgage

Question 23

Principal

Answer 23

Basic amount of mortgage loan, not counting interest and any other additional fees

Question 24

Title

Answer 24

Indicates right of ownership of property and may after refer to the document(s) that establish this right.

Question 25

Title Insurance

Answer 25

Special insurance that protects lenders against loss of their interest in property

Question 26

Title Search

Answer 26

Check of legal records to make sure you are buying the house from the legal owner and there are no liens, overdue special assessments, or other outstanding claims against property