Realestate Vocabulary

Question 1

Appreciation

Answer 1

Appreciation is the increase in the value of property due to changes in market conditions, inflation, or other causes

Question 2

Assignment

Answer 2

Assignment is when ownership of your mortgage is transferred from one company or individual to another.

Question 3

Acceleration clause

Answer 3

A clause in your mortgage that allows lender to demand payment of the outstanding loan balance for various reasons. Common reasons for accelerating a loan are if borrower defaults on loan or transfers title to another individual without informing the leader.

Question 4

Adjustable-rate mortgage (ARM)

Answer 4

A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes

Question 5

Adjustment Date

Answer 5

The date the interest rate changes on an adjustable-rate mortgage

Question 6

Amortization

Answer 6

Loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time the interest portion decreases as the loan balance decreases and the amount applied to the principal increases so that the loan is paid off(amortized) in the specified time

Question 7

Amortization schedule

Answer 7

A table that shows how much each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero

Question 8

Annual percentage rate (APR)

Answer 8

Value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage.

Question 9

Application

Answer 9

Form used to apply for a mortgage loan, containing information about a borrower’s income, savings, assets, debts, and more.

Question 10

Appraisal

Answer 10

A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.

Question 11

Appraised value

Answer 11

An opinion of a property’s fair market value, based on an appraisers knowledge, experience, and analysis of the property.
Based on comparable sales, and most recent sale

Question 12

Appraiser

Answer 12

An indie qualified by education, training and experience to estimate the value of real property and personal property

Question 13

Assessed value

Answer 13

Valuation placed on property by a public tax assessor for purposes of taxation.

Question 14

Assessment

Answer 14

Placing of a value on property for the purpose of taxation

Question 15

Assesor

Answer 15

Public official who establishes the value of a property for taxation purposes

Question 16

Asset

Answer 16

Items of value owned by an individual. Assets that can quickly be converted into cash are considered “liquid assets”

Question 17

Assumable mortgage

Answer 17

A mortgage that can be assumed by the buyer when a home is sold. Buyer must qualify to assume the loan

Question 18

Assumption

Answer 18

The term applied when a buyer assumes the sellers mortgage

Question 19

Ballon mortgage

Answer 19

Mortgage loan that requires the remaining principal balance be paid at a specific point in time.

Question 20

Balloon payment

Answer 20

The final lump sum payment that is due at the termination of a balloon mortgage

Question 21

Bankruptcy

Answer 21

By filing in federal bankruptcy court and individual or individuals can restructure or relieve themselves of debts and liabilities.

Question 22

Bill of sale

Answer 22

A written document that transfers title to personal property

Question 23

Biweekly mortgage

Answer 23

A mortgage in which you make payments every two weeks instead of once a month.

Question 24

Bond market

Answer 24

The daily buying and selling of thirty year treasury bonds.

Question 25

Bridge loan

Answer 25

Not used as much anymore.

Loan obtained by those who have not yet sold their previous property but must close on a purchase property.

Question 26

Broker

Answer 26

anyone Who acts as an agent bringing two parties together for any type of transaction and earns a fee for doing so.

Question 27

Buydown

Answer 27

Fixed rate mortgage interest rate is bought down for a temporary period.