Haven't figured out all the real estate terminology you hear the investors throwing your way?
Real Estate Investing Guru Review's dictionary of real estate terminology will give you the power needed to talk with sellers, buyers, and investors.
This is housing from a factory, which is required to follow the federal building code. These may either be single or multi section houses, they are then transported and installed on the specified land. If they are permanently fixed then they can be classed as real properties and mortgaged, if they are not fixed then they are classed as personal property and are financed by using a retail instalment sales agreement.
This is the percentage that is added on to the specified index on a adjustable-rate mortgage, it is used to verify the rate of interest for each date of adjustment.
This is the value of the house in question. Appraisals are used to calculate the value of the property when it is on the market.
This is the date of the total payment date, this will also be shown on the note of the mortgage.
Merged Credit Report:
This is a credit report that is used to collate details on several bureaus.
These are changes that takes place on a loan.
Money Market Account:
This is a type of investment where funds are invested in the form of short-term securities.
This is a loan that uses the purchases property as a collateral, this term is also used in some countries to state the document that is being signed. It can also indicate the money borrowed, plus interest to purchase the property. The amount of the mortgage is generally the cost of the property at purchase price minus the down payment of the mortgage.
This is an individual or a firm that bring both borrowers and lenders together to carry out loan origination. A mortgage broker takes loans applications and processes them, they are also able to close the loan.
Mortgage Insurance (MI):
Required if the down payment for a mortgage twenty percent lower then the purchase price. This is a type of insurance that is used to protect lenders against any losses that may be caused by a mortgage loan belonging to a borrower.
Mortgage Insurance Premium (MIP):
This is the amount paid for insurance on the mortgage, this is either to a government agency or a private company.
This is the lender who is providing the funds for the mortgage. These lenders also are in charge of managing the credit and financial review, the property and also the loan application prices through to the closing of the sale.
Mortgage Life Insurance:
This is a form of insurance that is used to pay off the mortgage if the borrow happens to pass away while any sum of money is still outstanding on the loan, acting as a form of credit life insurance.
This is the rate of interest applied to the money that has been borrowed to purchase a property.
This is the individual or institution in which the mortgage is given to.
This is the owner of housing promising a house as security to pay off debt from the borrower.
This is for a property that features more than four housing parts.
This is typically a building that consist of more than four housing parts.
Multiple Listing Service (MLS):
This is a clearing house which is used to regularly swap details on any available details of current houses for sale, as well as sharing commissions with members who locate the purchasers of the properties.
This is a fund that used the money provided by the investors to buy many different types of securities.
Real Estate Terminology M to Resources