Housing Vocab Flashcards
Amortization
Plan that allows you yo make regular payments to gradually reduce the principal amount of the debt
Appraisal
an estimate on the value of property
Certificate Of title
Written statement to determine ownership of the property.
Leasing
Date title passes from seller to buyer
Closing Costs
Fees in addition to the price of the property. Such fees include: title search, insurance, appraisal, surveys, attorney, & docum
Commision
money paid to the real estate agent by the seller for finding a buyer and completing a sale.
Deed
Formal document that transfers the title on property from one owner to another.
Default
Failure by buyer to make payments on property as agreed.
Depreciation
Amount house has declined in value
Down payment
Money paid by buyer to the seller at the time they sign an agreement to sell.
Earnest Money
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.
Equity
Amount of property value that totally belongs to homeowner
Escrow funds
Money or papers that represent unsettled financial transactions
Foreclosure
Taking and selling mortgaged property in order to obtain payment on loan when buyer is in default.
Interest
Charge paid for borrowing money
Lien
legal claim placed in property by someone who wants payment for money due by owner
Mortgage
Claim against property given to lender by buyer as security for money borrowed
Mortgage note
Written agreement to repay loans
Mortgagee
Lender of mortgage funds
Mortgagor
Borrower of mortgage funds
Plat
Map or chart made by surveyor to show exact boundaries of a piece of property
Points
Fees charged by lender in addition to the amount of the mortgage. Is one percent of Mortgage
Principal
Basic amount of mortgage loan, not counting interest and any other additional fees
Title
Indicates right of ownership of property and may after refer to the document(s) that establish this right.
Title Insurance
Special insurance that protects lenders against loss of their interest in property
Title Search
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
