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26 Cards in this Set

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  • Back
lease
a legal document that defines the conditions of a rental agreement
condominium
an individually owned housing unit in a building with several such units
cooperative housing
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
manufactured home
a housing unit that is fully or partially assembled in a factory before being moved to the living site
zoning laws
restrictions on how the property in an area can be used
earnest money
a portion of the price of the home that the buyer deposits as evidence of good faith to indicate a serious purchase offer
mortgage
a long-term loan on a specific piece of property such as a home or other real estate
points
prepaid interest charged by a lending institution for the mortgage; each discount point is equal to 1 percent of the loan amount
conventional mortgage
a fixed-rate, fixed-payment home loan with equal payments over 15, 20 or 30 years
amortization
the reduction of a loan balance through payments made over a period of time
balloon mortgage
a home loan with fixed monthly payments and a large final payment, usually after 3, 5 or 7 years
adjustable-rate mortgage (ARM)
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
rat cap
a limit on the increases and decreases in the interest rate charged on an adjustable-rate mortgage
payment cap
a limit on the payment increases for an adjustable-rate mortgage
graduated-payment mortgage
a home financing agreement in which payments rise to different levels every 5 or 10 years during the loan term
growing-equity mortgage
a home loan agreement that provides for payment increases to allow the amount owed to be paid off more quickly
buy-down
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
shared appreciation mortgage (SAM)
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
second mortgage
a cash advance based on the paid-up value of a home; also called a home equity loan
reverse mortgage
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
refinancing
the process of obtaining a new mortgage on a home to get a lower interest rate
closing costs
fees and charges paid when a real estate transaction is completed; also called settlement costs
title insurance
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
deed
a document that transfers ownership of property from one party to another
escrow account
money, usually deposited with the lending financial institution, for the payment of property taxes and homeowner's insurance
appraisal
an estimate of the current value of a property