Real Estate Terms Glossary: A-Glossary Terms
I am going to start writing more blogs on training and vocabulary words, I would estimate there are 500-1000 terms in the industries of real estate,investing, finance, title, appraisal, buying, selling, agents, etc. that can be learned. I will try to do 1 letter at a time. This is a very small sampling of the letter A. Because their are so many terms to learn, I don’t want to overload you right now with too many terms. Just try to learn a few per day.
Abstract (of Title)
A summary of the public records of title to a piece of land. If there are title defects they must be cleared before a buyer can purchase clear, marketable, and insurable title.
Acceleration Clause
An acceleration clause is a clause in which your mortgage which allow the lender to demand payment of the outstanding loan balance for reasons in the note. Common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual or entity without informing the lender.
Accessed Value
Accessed value is the valuation placed on property by a public tax assessor for purposes of taxation, this is usually done one time per year, annually. It can go up or down depending on the market.
Adjustable-Rate Mortgage (ARM)
An adjustable rate mortgage is a mortgage in which the interest changes periodically, according to corresponding fluctuations in an index, there are many indexes, COFI, LIBOR, etc. ARMs are tied to indexes.
Adjustment Interval
On an adjustable rate mortgage ARM, the time between changes in the interest rate and/or monthly payment, usually one, three or five years.
Agreement of Sale
Known by various names, such as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction. A contract in which a seller agrees to sell and a buyer agrees to buy, under specific terms spelled out in writing and signed by both parties, some people create their own, some real estate agents have to use state approved.
Amortization
The loan payment consisting in which a portion will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over a period of time, the interest portion decreases as the loan balance decreases, and the amount applied to principal on the payment increases so that the loan is paid off (amortized) in the specified time.
Amortization Schedule
An amortization schedule is a table which shows how much of each payment will be applied toward principal and how much allocated toward interest over the entire life of the loan, whether it’s 15 years, 30 years, etc. Showing the gradual decrease of the loan balance until it reaches zero.
Appraisal
An appraisal is a written justification or opinion of the price a property is worth, based on an analysis of comparable sales of similar homes nearby.
Appraised Value
Appraised value is an opinion of a property’s fair market value in today’s market, based on an appraiser’s knowledge, experience, and analysis of the property. Since an appraisal is based primarily on comparable sales. Some lenders will take 3 months, 6 months or 12 month old comps.
Appraiser
An appraiser is an individual qualified by training, education, and some experience to estimate the value of real property and personal property. Most appraisers are independent, but some work for the lenders.
Appreciation
Appreciation is the increase in the value of a property due to changes in market conditions, inflation, location, certain cities appreciate at different rates at different times.
Assignment
When ownership of your mortgage is transferred from one company or individual to another, it is called an assignment. This term can also be used if someone is assigning a purchase agreement or contract.
Assumable Mortgage
A mortgage that can be assumed by a new buyer with the same terms in effect. Usually, the new borrower must “qualify” in order to assume the loan with the banks permission.
If you have questions about real estate at anytime please email me ron@minnesotainvestors.com
Please do me a favor and tell just 3 friends today, to subscribe to this daily blog feed by going here:
http://www.minnesotainvestors.com/blog/feed/
BookMark, Email, or Subscribe This Page, Tell Friends!
Save to Browser Favorites
Ask
backflip
blinklist
BlogBookmark
Bloglines
BlogMarks
Blogsvine
BUMPzee!
CiteULike
co.mments
Connotea
del.icio.us
DotNetKicks
Digg
diigo
dropjack.com
dzone
Facebook
Fark
Faves
Feed Me Links
Friendsite
folkd.com
Furl
Google
Hugg
Jeqq
Kaboodle
linkaGoGo
LinksMarker
Ma.gnolia
Mister Wong
Mixx
MySpace
MyWeb
Netvouz
Newsvine
PlugIM
popcurrent
Propeller
Reddit
Rojo
Segnalo
Shoutwire
Simpy
sk*rt
Slashdot
Sphere
Sphinn
Spurl.net
Squidoo
StumbleUpon
Technorati
ThisNext
Webride
Windows Live
Yahoo!
Email This to a Friend
If you like this then please subscribe to the