Mortgage GlossaryIf you’re trying to take advantage of the real estate market and find a home at a great price, you’ll have to deal with understanding the mortgage lingo in order to get a mortgage you’re happy with. So All My Sons of West Palm Beach is here to assist, with the help of real estate search engine Trulia, with the most common words used and attributed to getting a mortgage. Of course, when you secure that loan you’re happy with, call the West Palm Beach movers to help you out with reputable moving services. We can also help you find professional moving boxes and moving kits to make packing simpler and more efficient.
Read below for mortgage vocabulary and get familiar with what real estate agents, brokers, appraisers and banks are really saying:
Adjustable rate: That’s an interest rate that may change over the life of the loan.
Appraisal: A document that features an estimated value of the property. This estimate is based on comparison of similar homes.
Assumable mortgage: The West Palm Beach movers say this is a loan that can be transferred once you sell the home to a new buyer.
Balloon Payment: This is a final lump sum larger than the other ones that’s due at the end of a balloon-type loan.
Collateral: This is a property that counts as security against a debt and it could be repossessed if the loan isn’t repaid.
Conventional loan: This is a loan that’s not insured by a federal government entity.
Deed: This is a document that legally transfers ownership of a property, it’s recorded with a description of the property.
Escrow: This a third-party financial instrument that holds funds on behalf of the two others that are part of the transaction.
Conditions can be made when someone is looking to buy a home. If these conditions are met, then the funds in the escrow account are transferred to the seller.
Fixed- rate mortgage: If you have this type of mortgage, then you’ll be paying the same fixed amount throughout the life of the loan.
HELOC: This is the acronym for home equity line of credit. This typically refers to a second mortgage so that the borrower can get money against the equity of a home up to a predetermined amount.
Lien: According to Trulia.com, this is a legal claim against a property that must be paid off before it’s sold.
PITI: This stands for principal, interest, taxes and insurance which make up a mortgage. Points: This is synonymous with one percent typically for the principal loan amount.