|
Adjustable Rate Mortgages have fluctuating interest rates, but those fluctuations are usually limited to a certain amount. Those limitations may apply to how much the loan may adjust over a six month period, an annual period, and over the life of the loan, and are referred to as "caps." Some ARMs, although they may have a life cap, allow the interest rate to fluctuate freely, but require a certain minimum payment which can change once a year. There is a limit on how much that payment can change each year, and that limit is also referred to as a cap.
When a borrower refinances his mortgage at a higher amount than the current loan balance
with the intention of pulling out money for personal use, it is referred to as a "cash
out refinance."
A document issued by the Veterans Administration that certifies a veteran's eligibility
for a VA loan.
Once the appraisal has been performed on a property being bought with a VA loan, the Veterans Administration issues a CRV.
An analysis of the transfers of title to a piece of property over the years.
A title that is free of liens or legal questions as to ownership of the property.
This has different meanings in different states. In some states a real estate transaction
is not consider "closed" until the documents record at the local recorders
office. In others, the "closing" is a meeting where all of the documents are
signed and money changes hands.
Closing costs are separated into what are called "non-recurring closing costs"
and "pre-paid items." Non-recurring closing costs are any items which are
paid just once as a result of buying the property or obtaining a loan. "Pre-paids"
are items which recur over time, such as property taxes and homeowner's insurance.
A lender makes an attempt to estimate the amount of non-recurring closing costs and
prepaid items on the Good Faith Estimate which they must issue to the borrower within
three days of receiving a home loan application.
See Settlement Statement.
Any conditions revealed by a title search that adversely affects the title to real estate.
Usually clouds on title cannot be removed except by deed, release, or court action.
Any additional individual who is both obligated on the loan and is on title to the property.
In a home loan, the property is the collateral. The borrower risks losing the property
if the loan is not repaid according to the terms of the mortgage or deed of trust.
Most salespeople earn commissions for the work that they do and there are many sales professionals
involved in each transaction, including Realtors, loan officers, title representatives,
attorneys, escrow representative, and representatives for pest companies, home warranty
companies, home inspection companies, insurance agents, and more. The commissions are
paid out of the charges paid by the seller or buyer in the purchase transaction. Realtors
generally earn the largest commissions, followed by lenders, then the others.
|
In some areas they are called Homeowners Association Fees. They are charges paid to
the Homeowners Association by the owners of the individual units in a condominium or
planned unit development (PUD) and are generally used to maintain the property and common
areas.
Those portions of a building, land, and amenities owned (or managed) by a planned unit development (PUD) or condominium project's homeowners'
association (or a cooperative project's cooperative corporation) that are used by
all of the unit owners, who share in the common expenses of their operation and maintenance.
Common areas include swimming pools, tennis courts, and other recreational facilities,
as well as common corridors of buildings, parking areas, means of ingress and egress,
etc.
In some states, especially the southwest, property acquired by a married couple during
their marriage is considered to be owned jointly, except under special circumstances.
This is an outgrowth of the Spanish and Mexican heritage of the area.
Recent sales of similar properties in nearby areas and used to help determine the market value
of a property. Also referred to as "comps."
A type of ownership in real property where all of the owners own the property, common
areas and buildings together, with the exception of the interior of the unit to which
they have title. Often mistakenly referred to as a type of construction or development,
it actually refers to the type of ownership.
Changing the ownership of an existing building (usually a rental project) to the condominium
form of ownership.
A condominium project that has rental or registration desks, short-term occupancy, food
and telephone services, and daily cleaning services and that is operated as a commercial
hotel even though the units are individually owned. These are often found in resort
areas like Hawaii.
A short-term, interim loan for financing the cost of construction. The lender makes
payments to the builder at periodic intervals as the work progresses.
A condition that must be met before a contract is legally binding. For example, home purchasers
often include a contingency that specifies that the contract is not binding until the
purchaser obtains a satisfactory home inspection report from a qualified home inspector.
An oral or written agreement to do or not to do a certain thing.
Refers to home loans other than government loans (VA and FHA).
An adjustable-rate mortgage that allows the borrower to change the ARM to a fixed-rate
mortgage within a specific time.
A type of multiple ownership in which the residents of a multiunit housing complex own
shares in the cooperative corporation that owns the property, giving each resident the
right to occupy a specific apartment or unit.
One of the indexes that is used to determine interest rate changes for certain adjustable-rate mortgages. It represents the weighted-average cost of savings, borrowings, and advances of the financial institutions such as banks and savings & loans, in the 11th District of the Federal Home Loan Bank.
|