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Glossary of Terms

adjustable-rate mortgage (ARM)

A mortgage that permits the lender to adjust the interest rate periodically on the basis of changes in a specified index.

amortization schedule

A timetable schedule showing the amount of each payment applied to interest and principal and the remaining balance after each payment is made.

annual percentage rate (APR)

The cost of a mortgage stated as a yearly rate; includes such items as interest, mortgage, and loan origination fee (points).

appraisal

A written analysis of the estimated value of a property prepared by a qualified appraiser.

biweekly payment mortgage

A mortgage requiring payments every two weeks instead of the standard monthly payment. The result for the borrower is a substantial savings in interest.

broker

A person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them.

certificate of title

A statement provided by an abstract company or attorney stating that the title to real estate is legally held by the current owner.

closing

A meeting at which a sale of a property is finalized by the buyer signing the mortgage documents, paying closing costs, and transfer of the deed to the property.

collateral

An asset (such as a car or a home) that guarantees the repayment of a loan.

commission

The fee charged by a broker or agent for providing services related to the real estate transaction such as marketing the property, bringing the parties together, and negotiating a purchase contract or loan.

deed

The legal document conveying title to a property.

earnest money deposit

A deposit made by the potential home buyer to show that he or she is serious about buying the house.

equity

A homeowner’s financial interest in a property.

Fair Credit Reporting Act

A consumer protection law that regulates the disclosure of consumer reports by consumer/credit reporting agencies and establishes procedures for correcting mistakes on one’s credit record.

home inspection

A thorough inspection that evaluates the structural and mechanical condition of a property.

lien

The legal claim against a property that must be satisfied before the property may be sold.

lock-in

A written agreement in which the lender guarantees a specified interest rate if a mortgage goes to closing within a set period of time.

mortgage

A legal document that pledges a property to the lender as security for payment of the debt.

mortgage insurance

A contract that insures the lender against loss caused by a mortgagor’s default on a government mortgage or a conventional mortgage.

net worth

The value of all of a person’s assets, including cash, minus all liabilities.

prime rate

The interest rate that banks charge to their preferred customers.

principal

The amount borrowed or remaining unpaid.

real estate agent

A person licensed to negotiate and transact the sale of real estate on behalf of the property owner.

REALTOR®

A registered collective membership mark which identifies real estate professionals who are members of the National Association of REALTORS® and subscribe to its strict Code of Ethics.

survey

A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachment, and other physical features.

title search

A check of the title records to ensure that the seller is the legal owner of the property and that there are no liens or other claims outstanding.

Truth in Lending

A federal law that requires lenders to fully disclose, in writing, the terms and conditions of a mortgage, including the annual percentage rate and other charges.

Underwriting

The process of evaluating a loan application to determine the risk involved for the lender.

Disclaimer: All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information on this site was last updated 03/06/2015. The listing information on this page last changed on 03/06/2015. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of Grand Junction MLS (last updated Thu 03/05/2015 11:57:43 AM EST). Real estate listings held by brokerage firms other than Bray Commercial may be marked with the Internet Data Exchange logo and detailed information about those properties will include the name of the listing broker(s) when required by the MLS. All rights reserved. --
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