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.