Welcome back to RealtyMyths Weekly Word Wizard! Here are the important real estate terms for the week. Bridge loan – Bridge loans are obtained by those who have not yet sold their previous property, but must close on a purchase property. The bridge loan becomes the source of their funds for the down payment. Cash-out refinance – When a borrower refinances his mortgage at a higher amount than the current loan balance with the intention of pulling out money for personal use. Construction loan – A short-term, interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses. Eviction – The lawful expulsion of an occupant from real property.
Welcome back to RealtyMyths weekly word wizard! Here are some terms that you should know. Capital budget An estimate of costs to cover replacements and improvements and the corresponding revenues needed to balance them, usually for a 12-month period. Different from an operating budget. Cost of equity This is the opportunity cost that your equity could have earned if you did not invest in property. Capital gain Profit on the sale of an asset that is subject to taxation. Capital Improvements. Major improvements made to a property that is written off over several years rather than expensed off in the year in which they are made. Capitalization rate The percentage of return on an investment when purchased on a free-and-clear or all-cash basis.
Welcome back to RealtyMyths weekly word wizard! Here are the terms that you should know before buying your first home. Active — A property that is on the market and available for sale. It may have received offers but none have been accepted. ARM — Adjustable-Rate Mortgage. A mortgage loan with a fluctuating interest rate. APR — Annual Percentage Rate. APR is a broader measure of the cost of borrowing money. It reflects not only the interest rate but also points, fees and other charges paid to obtain a loan. Appraisal — An estimate of the market value of a property based on comparable recent sales of homes nearby. It is done by a licensed appraiser for a lender.
Welcome back to RealtyMyths weekly word wizard. Here are some terms that you should know before buying your first home. DTI — Debt-to-Income. The total percent of a borrower’s income that is paid toward debt each month calculated as a ratio of a borrower’s gross monthly income over his debts including car payments, student loans, and credit card bills. A borrower’s DTI affects his credit rating. FSBO — For Sale By Owner. The owner of the property is selling without a real estate agent. LTV — Loan-to-Value. The ratio of the amount of money borrowed over the appraised value of the home. It is a key risk factor that lenders consider when evaluating a loan application. PITI — Principal, Interest, Taxes, and Insurance. The major homeownership costs included in many monthly mortgage payments.
Welcome back to RealtyMyths Weekly Real Estate Word Wizard! Here are some terms that you should know. Arms-length transaction — Both parties to a transaction are acting in their own self-interest. Neither party is pressured by or acts in connection with the other to assure the fair market value of the property. Assessment — An estimate of the home’s value for property tax purposes. Closing costs — The expenses and fees associated with the purchase and sale of a home, such as taxes, title insurance, appraisal fees, and lender fees. Contingency — A condition that must be met before a sale can close. Common contingencies include home inspection, financing, and home appraisal.
Welcome back to Weekly Word Wizard! This week, we will discuss about property listings. Property listings MLS (Multiple Listing Service): Distributes local and regional listing information on a website for real estate agents and brokers. Listing: The actual property being sold or a contract established by the seller with the broker giving permission to sell their home. Listing Agent/Broker: Is responsible for selling a piece of property on behalf of the seller.