The closing includes the delivery of a deed, financial adjustments, the signing of notes, and the disbursement of funds necessary to complete the sale and loan transaction.Ĭlosing Costs: Money paid by the borrower in connection with the closing of a mortgage loan. This may take the form of a levy for a special purpose or a tax in which the property owner pays a share of the cost of community improvements according to the valuation of his or her property.īorrower: A person (also known as mortgagor) who receives funds in the form of a loan with an obligation to repay principal with interest.īuydown: Money advanced by an individual (builder, seller, etc.) to reduce the monthly payments for a home mortgage either during the entire term or for an initial period of years.Ĭash to Close: Liquid assets that are readily available to be used to pay the closing costs involved in a closing of a mortgage transaction.Ĭlosing: The consummation of a real estate transaction. The term also refers to the process by which this estimate is obtained.Īs Separate Property: Ownership in real property which is to be specifically excluded from community property.Īssessed Valuation: The value that a taxing authority places on real or personal property for the purpose of taxation.Īssessment: A charge against a property for purpose of taxation. It will be higher than the interest rate stated on the note because it includes, in addition to the interest rate, loan discount points, fees and mortgage insurance.Īpplication: A printed form used by a mortgage lender to record necessary information concerning a prospective mortgage.Īpplication Fee: A sum of money paid towards estimated initial mortgage processing expenses such as appraisal and credit report.Īppraisal: A report made by a qualified person setting forth an opinion or estimate of property value. The APR reflects the cost of your mortgage loan as a yearly rate. Adjustable Rate Mortgage (ARM): A mortgage in which the interest rate is adjusted periodically according to a pre-selected index.Īmortization: Payment of a debt in regular, periodic installments of principal and interest as opposed to interest only payments.Īnnual Percentage Rate (APR): A term used in the Truth-in-Lending Act to represent the percentage relationship of the total finance charge to the amount of the loan.
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