When listing or purchasing a home, it may seem as though real estate has its own language. That is partly true. There are abbreviations, acronyms and slang terms that may have you confused, or worse… feeling out of the loop. Well, we’re here to get you back in the loop. Read on for a quick lesson in terminology that may help you out.
Adjustable-Rate Mortgage (ARM)
Also known as a Variable Rate Mortgage, this program is a type of mortgage that has an interest rate that varies for however long the loan lasts depending on loan and rate index.
This is the amount of loan debt that decreases over time. This is achieved through the repayment of the principal.
Annual Percentage Rate (APR)
This is going to be the total cost of acquiring a loan including the yearly cost of a mortgage plus interest and other expenses.
This is how much the home or property increases over time based on a few things such as home improvements, location, market fluctuation, and so on.
An ideal market for buyers. This means there are plenty of homes for sale in the region in which they are looking. Therefore, there is a better chance of getting an amazing home for a low or fair price.
A binding offer from your lender that includes the amount of the mortgage, the interest rate, and repayment terms.
Fair Market Value (FMV)
The price at which property would be transferred between a willing buyer and willing seller, each of whom has a reasonable knowledge of all pertinent facts and is not under any compulsion to buy or sell.
For an adjustable rate mortgage (ARM), a limit on the amount that the interest rate or monthly payment can increase or decrease over the life of the loan.
A cash asset or an asset that is easily converted into cash.
Paid Outside of Closing (POC)
Paid outside of closing. Sometimes the lender requests this money before settlement.
Not every real estate agent is a REALTOR®. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.
An ideal market for sellers. This usually is because there is a shortage of desirable homes to live in and there are too many potential buyers on the hunt for the right one. In turn, this can raise the prices of homes on the market.
This term describes a home that is move-in ready, which includes furniture and appliances. This term also ensures that the overall structure of the home is in functioning order.
Watch this blog for more real estate terms and helpful tips. For information on the finest homes in the Palm Beaches, contact a Tauber Real Estate Agent today at 561-626-4633.