Ch.22- Buying A Home

Front 1

Market Value

Back 1

Of a home is the highest price that the property will bring on the market. In other words, it is th eprice at which the property could be bought and sold on the market.

Front 2

Equity

Back 2

Is the difference between the market value of property and the amount owed on it.

Front 3

Points

Back 3

(Mortgage) Extra interest that borrowers must pay at closing (time of purchase), with each point being equal to 1 percent of the loan amount.

Front 4

Closing Costs

Back 4

Also referred to a settlement costs, are the expenses incurred in transferring ownership from buyer to seller in a real estate transaction.

Front 5

Multiple Listing Service (MLS)

Back 5

Is a real estate marketing service in which agents from many real estate agencies pool their home listings and agree to share commissions on the sales.

Front 6

Offer

Back 6

Is a formal document that expresses interest in entering into a contract with someone else.

Front 7

Earnest Money

Back 7

Is a portion of the purchase price that the buyer deposits as evidence of good faith to show that the purchase offer is serious.

Front 8

Acceptance

Back 8

Is a formal agreement to the terms of an offer, forming a contract between the parties.

Front 9

Counteroffer

Back 9

Or an offer in response to another offer.

Front 10

Fixed-rate Mortgage

Back 10

Is a mortgage on which the interest rate does not change during the term of the loan.

Front 11

Adjustable-rate Mortgage (ARM)

Back 11

Is a mortgage for which the interest rate changes in response to the movement of interest rates in the economy as a whole.

Front 12

Title

Back 12

Is a legal document that establishes ownership.

Front 13

Deed

Back 13

Is a legal document that transfers title of real property from one party to another.

Front 14

Lien

Back 14

Is a financial claim on property.