Real Estate And Mortgage Glossary

Basic Terms Explained

Understanding real estate terminology can be of assistance in buying or selling a property. In order to help you understand words commonly used in a real estate transaction, I have prepared a list of terms to become familiar with.

Interest Rate
The monthly effective rate paid (or received if you are a creditor) on borrowed money. Expressed as a percentage of the sum borrowed.

MLS- IDX
IDX, or broker reciprocity, is a listing sharing arrangement between brokers within a Mulitple Listing Service.

Market Value
An asset's market value is the price it would fetch in the market, if it were sold in the current marketplace.

Title Insurance
A type of insurance which guarantees the ownership and quality of title to land.

Appraisal
An educated estimate of the value of a property on a certain date given by a person, usually after an inspection of the property.

As is
Implied in most Agreements of Purchase and Sale, suggests the buyer is accepting the property in it present state and relinquishes and responsibility from the buyer.

Bankruptcy
a) A person who has done any of the acts that by law entitle his creditors to have his estate administered for their benefit; b) a person judicially declared subject to having his estate administered under the bankrupt laws for the benefit of his creditors; c) a person who becomes insolvent.

Bid
To offer (a price) whether for payment or acceptance.

Property Tax
A tax levied on real or personal property

Interest Rate
The percentage usually on an annual basis that is paid for the use of money borrowed from another

Home Loan
a) Money lent at interest; b) something lent usually for the borrower's temporary use.

Credit Risk
An estimate of the amount of credit that can be extended to a company or person without undue risk.

Credit Union
A cooperative organization that makes loans to its members at low interest rates.

Prime Rate
The lowest rate of interest on bank loans at a given time and place, offered to preferred borrowers.

ARM
A mortgage whose interest rate is raised or lowered at periodic intervals according to the prevailing interest rates in the market.

Home Equity Loan
A loan or credit line that is secured by the equity the borrower has in a home.

Mortgage
A temporary, conditional pledge of property to a creditor as security for performance of an obligation or repayment of a debt.

 

Home Page | My Listings | Prescott Lakes | 55 Plus Communities | Prescott Lifestyle ... Exceptional | About | Buyers | Sellers | Area Info | Mortgage Information | Properties | My Commitment and Service | Free Real Estate Reports | Free E-mail Property Updates | Free Market Update | Property Search (Prescott Area - Land) | Property Search (Prescott Area - Residential) | Realty Executives Arizona | On-Line Searching for Prescott Area | | REI
Site Map | E-Mail

PrescottPrescott ValleyDewey


Logo
Realty Executives Northern Arizona
1401 Prescott Lakes Parkway • Prescott, AZ 86301
928. 308. 0359 • KarenWinton@RealtyExecutives.com




Copyright © 1997-2017 Superlative Inc. All Rights Reserved.