Ayers Realty
 
 
 
 
Ayers Realty
807 Shorter Ave Rome, GA 30165      706-232-1112     
Contact Property Search  
< Back to What's new for 2013?

Real Estate Terms

April 15, 2013 1:15 pm

Like any other profession, there is a lot of terminology and acronyms in the real estate business. Below is a glossary of the more frequently used:

  • APR (Annual Percentage Rate) - The yearly cost of a loan, expressed as a percentage of the amount loaned.
  • ARM (Adjustable Rate Mortgage) - An interest rate that changes periodically, the rate is set in relation to an index.
  • Balloon Payment - A lump sum payment due at the end of the loan.
  • Cap - Maximum amount of a payment or rate increase on an adjustable rate mortgage.
  • Ceiling - Maximum interest rate on an adjustable rate mortgage.
  • Closing Costs - Fees paid when a property changes ownership, these are separate from the loan. Amount ranges from 3-5% of the purchase price.
  • CMA (Comparative Market Analysis) - Comparison of similar properties in a local area.
  • Conforming Loan - A loan under $203,150 that conforms to guidelines used by Fannie Mae or Freddie Mac.
  • Contingencies - Conditions of the offer and contract that would negate the sale of the property.
  • Escrow - Monies held in a third party account that are paid out during the closing, this usually contains earnest money and deposit. Afterwards the account is used to pre-pay homeowners insurance and property taxes.
  • FSBO (For Sale By Owner) - When an owner attempts to sell a property without the benefit of a real estate professional.
  • Good Faith Estimate - Closing cost estimate that a potential lender must (by law) provide you within 3 days of your application.
  • Lien - A legal claim against a property, this can prevent the sale of a property until it's paid off.
  • Lock - The interest rate at which your lender commits, usually for 30-60 days.
  • MLS (Multiple Listing Service) - A database of homes for sale that is maintained by a local real estate association. Your real estate professional is a member of their local MLS and has access to this database of home.
  • PMI (Private Mortgage Insurance) - Insurance that the borrower must carry when loan amount is more than 80% of the purchase price. This protects the lender in case of default on the loan.
  • Points - The amount paid to lower the interest rate of a loan. Each point is equal to 1% of the loan.
  • Title Insurance - Insurance that the borrower purchases to protect the lender should a legal dispute over the proper arise.

If you come across terms of acronyms not on this list, please don't hesitate to ask us what they mean. We're here to help.

Add a comment

TwitterFacebookLinkedinYoutubepinterest