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26 Cards in this Set
- Front
- Back
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lease
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a legal document that defines the conditions of a rental agreement
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condominium
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an individually owned housing unit in a building with several such units
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cooperative housing
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a form of housing in which a building containing a number of housing in which a building containing a number of housing units is owned by a nonprofit organization whose members rent the units
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manufactured home
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a housing unit that is fully or partially assembled in a factory before being moved to the living site
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zoning laws
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restrictions on how the property in an area can be used
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earnest money
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a portion of the price of the home that the buyer deposits as evidence of good faith to indicate a serious purchase offer
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mortgage
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a long-term loan on a specific piece of property such as a home or other real estate
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points
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prepaid interest charged by a lending institution for the mortgage; each discount point is equal to 1 percent of the loan amount
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conventional mortgage
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a fixed-rate, fixed-payment home loan with equal payments over 15, 20 or 30 years
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amortization
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the reduction of a loan balance through payments made over a period of time
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balloon mortgage
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a home loan with fixed monthly payments and a large final payment, usually after 3, 5 or 7 years
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adjustable-rate mortgage (ARM)
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a home loan with an interest rate that can change during the mortgage term due to changes in the market interest rates; also called flexible-rate mortgage or a variable-rate mortgage
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rat cap
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a limit on the increases and decreases in the interest rate charged on an adjustable-rate mortgage
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payment cap
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a limit on the payment increases for an adjustable-rate mortgage
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graduated-payment mortgage
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a home financing agreement in which payments rise to different levels every 5 or 10 years during the loan term
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growing-equity mortgage
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a home loan agreement that provides for payment increases to allow the amount owed to be paid off more quickly
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buy-down
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an interest rate subsidy from a home builder or a real estate developer that reduces a home buyer's mortgage payments during the first few years of the loan
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shared appreciation mortgage (SAM)
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a home loan agreement in which the borrower agrees to share the increased value of the home with the lender when the home is sold
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second mortgage
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a cash advance based on the paid-up value of a home; also called a home equity loan
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reverse mortgage
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a loan based on the equity in a home, that provides elderly homeowners with tax-free income and is paid back with interest when the home is sold or the homeowner dies
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refinancing
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the process of obtaining a new mortgage on a home to get a lower interest rate
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closing costs
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fees and charges paid when a real estate transaction is completed; also called settlement costs
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title insurance
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insurance that, during the mortgage ter, protects the owner or the lender against financial loss resulting from future defects in the title and from other unforeseen property claims not excluded by the policy
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deed
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a document that transfers ownership of property from one party to another
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escrow account
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money, usually deposited with the lending financial institution, for the payment of property taxes and homeowner's insurance
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appraisal
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an estimate of the current value of a property
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