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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ABSORPTION RATE Back to top
The ratio of the number of properties in an area that have been sold against the number availablewww.SKIPtheBULL.com Used to show the volatility of a marketwww.SKIPtheBULL.com
ABSTRACTION METHOD Back to top
This method of estimating the value of property uses similar properties available in the same market to extract the value of a parcel of landwww.SKIPtheBULL.com
ACCELERATION CLAUSE Back to top
A provision in a mortgage that gives the lender the right to demand immediate payment of the outstanding loan balance under certain circumstanceswww.SKIPtheBULL.com Usually when the borrower defaults on the loanwww.SKIPtheBULL.com
ACCESSORY BUILDING Back to top
A building separate from the main structure on a propertywww.SKIPtheBULL.com Often used for a specific purpose, such as a workshop, storage shed or garagewww.SKIPtheBULL.com
ACCRETION Back to top
The natural growth of a piece of land resulting from forces of nature
ACRE Back to top
43,560 square feetwww.SKIPtheBULL.com A measurement of areawww.SKIPtheBULL.com
ACTUAL AGE Back to top
The amount of time that has passed since a building or other structure was builtwww.SKIPtheBULL.com See also: EFFECTIVE AGE
ADJUSTMENT DATE Back to top
The date the interest rate changes on an adjustable rate mortgagewww.SKIPtheBULL.com
AD VAL OREM TAX Back to top
Taxes assessed based on the value of the land and improvements
ADDENDUM Back to top
A supplement to any document that contains additional information pertinent to the subjectwww.SKIPtheBULL.com Appraisers use an addendum to further explain items for which there was inadequate space on the standard appraisal formwww.SKIPtheBULL.com
ADJUSTABLE-RATE MORTGAGE (ARM) Back to top
A type of mortgage where the interest rate varies based on a particular index, normally the prime lending ratewww.SKIPtheBULL.com
ADJUSTED BASIS Back to top
The value of an asset (property or otherwise) that includes the original price plus the value of any improvement, and less any applicable depreciationwww.SKIPtheBULL.com
ADJUSTED SALES PRICE Back to top
An opinion of a property's sales price, after adjustments have been made to account for differences between it and another comparable propertywww.SKIPtheBULL.com
AESTHETIC VALUE Back to top
The additional value a property enjoys based on subjective criteria such as look or appealwww.SKIPtheBULL.com
AFFIRMATION Back to top
A declaration that a certain set of facts are truthfulwww.SKIPtheBULL.com
AFFORDABILITY ANALYSIS Back to top
A calculation used to determine an individual's likelihood of being able to meet the obligations of a mortgage for a particular propertywww.SKIPtheBULL.com Takes into account the down payment, closing costs and on-going mortgage paymentswww.SKIPtheBULL.com
AGENT Back to top
A person who has been appointed to act on behalf of another for a particular transactionwww.SKIPtheBULL.com
AMENITY Back to top
Any feature of a property that increases its value or desirabilitywww.SKIPtheBULL.com These might include natural amenities such as location or proximity to mountains, or man-made amenities like swimming pools, parks or other recreationwww.SKIPtheBULL.com
AMERICAN SOCIETY OF APPRAISERS Back to top
An organization of appraisal professionals and others interested in the appraisal professionwww.SKIPtheBULL.com
AMORTIZATION Back to top
The repayment of a loan through regular periodic paymentwww.SKIPtheBULL.com
AMORTIZATION SCHEDULE Back to top
The breakdown of individual payments throughout the life of an amortized loan, showing both principal contribution and debt service (interest) feeswww.SKIPtheBULL.com
AMORTIZATION TERM Back to top
The length of time over which an amortized loan is repaidwww.SKIPtheBULL.com Mortgages are commonly amortized over 15 or 30 yearswww.SKIPtheBULL.com
AMPERAGE Back to top
A measure of electric current describing the magnitudewww.SKIPtheBULL.com
ANNUAL PERCENTAGE RATE (APR) Back to top
The rate of annual interest charged on a loanwww.SKIPtheBULL.com
ANNUITY Back to top
A sum of money paid at regular intervals, often annuallywww.SKIPtheBULL.com
APPLICATION Back to top
A form used to apply for a mortgage loan that details a potential borrower's income, debt, savings and other information used to determine credit worthinesswww.SKIPtheBULL.com
APPRAISAL Back to top
A ''defensible'' and carefully documented opinion of valuewww.SKIPtheBULL.com Most commonly derived using recent sales of comparable properties by a licensed, professional appraiserwww.SKIPtheBULL.com
APPRAISAL FOUNDATION Back to top
A not-for-profit educational organization established by the appraisal profession in the United States in 1987www.SKIPtheBULL.com It is dedicated to the advancement of professional valuation and responsible for establishing, improving, and promoting the Uniform Standards of Professional Appraisal Practice (USPAP)www.SKIPtheBULL.com
APPRAISAL INSTITUTE Back to top
A world-wide organization dedicated to real estate appraisal education, publication and advocacywww.SKIPtheBULL.com
APPRAISAL PRINCIPLES Back to top
The basic building blocks of the property valuation process, including property inspection, market analysis and basic economicswww.SKIPtheBULL.com
APPRAISAL REPORT Back to top
The end result of the appraisal process usually consists of one major standardized form such as, the Uniform Residential Appraisal Report form 1004, as well as all supporting documentation and additional detail informationwww.SKIPtheBULL.com The purpose of the report is to convey the opinion of value of the subject property and support that opinion with corroborating informationwww.SKIPtheBULL.com
APPRAISAL STANDARDS BOARD (ASB) Back to top
An independent board of the APPRAISAL FOUNDATION, which writes, amends, and interprets USPAPwww.SKIPtheBULL.com The ASB is composed of up to seven appraisers appointed by the Foundation's Board of Trusteeswww.SKIPtheBULL.com The ASB holds public meetings throughout the year to interpret and amend USPAPwww.SKIPtheBULL.com
APPRAISED VALUE Back to top
An opinion of the fair market value of a property as developed by a licensed, certified appraiser following accepted appraisal principalswww.SKIPtheBULL.com
APPRAISER Back to top
An educated, certified professional with extensive knowledge of real estate markets, values and practiceswww.SKIPtheBULL.com The appraiser is often the only independent voice in any real estate transaction with no vested interest in the ultimate value or sales price of the propertywww.SKIPtheBULL.com
APPRECIATION Back to top
The natural rise in property value due to market forceswww.SKIPtheBULL.com
ARMS LENGTH TRANSACTION Back to top
Any transaction in which the two parties are unconnected and have no overt common interestswww.SKIPtheBULL.com Such a transaction most often reflects the true market value of a propertywww.SKIPtheBULL.com
ASSESSED VALUE Back to top
The value of a property according to jurisdictional tax assessmentwww.SKIPtheBULL.com
ASSESSMENT Back to top
The function of assigning a value to a property for the purpose of levying taxeswww.SKIPtheBULL.com
ASSESSMENT RATIO Back to top
The comparative relationship of a property's assessed value to its market valuewww.SKIPtheBULL.com
ASSESSOR Back to top
The jurisdictional official who performs the assessment and assigns the value of a propertywww.SKIPtheBULL.com
ASSET Back to top
Any item of value which a person ownswww.SKIPtheBULL.com
ASSIGNMENT Back to top
Transfer of ownership of a mortgage usually when the loan is sold to another companywww.SKIPtheBULL.com
ASSUMABLE MORTGAGE Back to top
A mortgage that can be taken over by the buyer when a home is soldwww.SKIPtheBULL.com
ASSUMPTION Back to top
When a buyer takes over, or "assumes" the sellers mortgagewww.SKIPtheBULL.com
ATTACHED HOUSING Back to top
Any number of houses or other dwellings which are physically attached to one another, but are occupied by a number of different peoplewww.SKIPtheBULL.com The individual houses may or may not be owned by separate people as wellwww.SKIPtheBULL.com
BACKFILL Back to top
The slope of the ground around a housewww.SKIPtheBULL.com
BALL COCK VALVE Back to top
The valve inside a toilet tank that controls the filling of the tankwww.SKIPtheBULL.com
BALLOON MORTGAGE Back to top
A mortgage loan in which the monthly payments are not large enough to repay the loan by the end of the termwww.SKIPtheBULL.com So at the end of the term, the remaining balance comes due in a single large paymentwww.SKIPtheBULL.com
BALLOON PAYMENT Back to top
The final large payment at the end of a balloon mortgage termwww.SKIPtheBULL.com
BANKRUPTCY Back to top
When a person or business is unable to pay their debts and seeks protection of the state against creditorswww.SKIPtheBULL.com Bankruptcies remain on credit records for up to ten years and can prevent a person from being able to get a loanwww.SKIPtheBULL.com
BEAM Back to top
A structural supporting memberwww.SKIPtheBULL.com
BILL OF SALE Back to top
A physical receipt indicating the sale of propertywww.SKIPtheBULL.com
BIWEEKLY MORTGAGE Back to top
A mortgage where you make "half payments" every two weeks, rather than one payment per monthwww.SKIPtheBULL.com This results in making the equivalent of 13 monthly payments per year, rather than 12, significantly reducing the time it takes to pay off a thirty year mortgagewww.SKIPtheBULL.com
BLIGHTED AREA Back to top
Any region of a city or town that has fallen into disrepair or otherwise has become undesirablewww.SKIPtheBULL.com
BONA FIDE Back to top
Any genuine offer, made without intent to defraud or deceivewww.SKIPtheBULL.com
BRIDGE FINANCING Back to top
An interim loan made to facilitate the purchase of a new home before the buyer's current residence sells and its equity is available to fund the new purchasewww.SKIPtheBULL.com
BRIDGING Back to top
Structural members used between beams to strengthen the structurewww.SKIPtheBULL.com
BROKER Back to top
An individual who facilitates the purchase of property by bringing together a buyer and a sellerwww.SKIPtheBULL.com
BTU Back to top
British Thermal Unitwww.SKIPtheBULL.com A unit of measurement used to describe heating or cooling capacitywww.SKIPtheBULL.com
BUFFER ZONE Back to top
A segment of land between two disparate municipal zones which acts as a shield to keep one zone from encroaching upon the otherwww.SKIPtheBULL.com Often used to separate residential districts from commercial areaswww.SKIPtheBULL.com
BUILDING CODE Back to top
Regulations that ensure the safety and material compliance of new construction within a municipalitywww.SKIPtheBULL.com Building codes are localized to ensure they are adequate to meet the risk of common hazardswww.SKIPtheBULL.com
BUILDING LINE OR SETBACK Back to top
The statutory distance between buildings and the property line, imposed by municipalities, home associations, or other agreementswww.SKIPtheBULL.com
BUILT-INS Back to top
Specific items of personal property which are installed in a real estate improvement such that they become part of the buildingwww.SKIPtheBULL.com Built-in microwave ovens and dishwashers are common exampleswww.SKIPtheBULL.com
BUNGALOW Back to top
A one-story, home-style dating from the early twentieth centurywww.SKIPtheBULL.com Often characterized by a low-pitched roofwww.SKIPtheBULL.com
BUY DOWN Back to top
Extra money paid in a lump sum to reduce the interest rate of a fixed rate mortgage for a period of timewww.SKIPtheBULL.com The extra money may be paid by the borrower, in order to have a lower payment at the beginning of the mortgagewww.SKIPtheBULL.com Or paid by the seller, or lender, as incentive to buy the property or take on the mortgagewww.SKIPtheBULL.com
BX CABLE Back to top
Electrical cable shrouded in a galvanized steel outer coverwww.SKIPtheBULL.com
CALL OPTION Back to top
A clause in a mortgage which allows the lender to demand payment of the outstanding balance at a specific timewww.SKIPtheBULL.com
CAP Back to top
Associated with Adjustable Rate Mortgageswww.SKIPtheBULL.com A limit on how high monthly payments or how much interest rates may change within a certain time period or the life of the mortgagewww.SKIPtheBULL.com
CAPE COD COLONIAL Back to top
A single-story house style made popular in New Englandwww.SKIPtheBULL.com Often characterized by a steep roof with gableswww.SKIPtheBULL.com
CAPITAL Back to top
Accumulated goods and money which is most often used to generate additional incomewww.SKIPtheBULL.com
CAPITAL EXPENDITURE Back to top
An outlay of funds designed to improve the income-producing capabilities of an asset or to extend its economic lifewww.SKIPtheBULL.com
CASH-OUT REFINANCE Back to top
Refinancing a mortgage at a higher amount than the current balance in order to transform a portion of the equity into cashwww.SKIPtheBULL.com
CAULKING Back to top
A pliable material used to seal cracks or openings such as around windowswww.SKIPtheBULL.com
CAVEAT EMPTOR Back to top
Literally translated: ''Let the buyer bewarewww.SKIPtheBULL.com'' A common business tenet whereby the buyer is responsible for verifying any and all claims by the seller of propertywww.SKIPtheBULL.com
CERTIFICATE OF DEPOSIT Back to top
A document showing that the bearer has a certain amount of money, at a particular amount interest, on deposit with a financial institutionwww.SKIPtheBULL.com
CERTIFICATE OF DEPOSIT INDEX Back to top
An index based on the interest rate of six month CD'swww.SKIPtheBULL.com Used to set interest rates on some Adjustable Rate Mortgageswww.SKIPtheBULL.com
CERTIFICATE OF ELIGIBILITY Back to top
A document issued by the Veterans Administration that certifies eligibility for a VA loanwww.SKIPtheBULL.com
CERTIFICATE OF OCCUPANCY Back to top
Issued by an appropriate jurisdictional entity, this document certifies that a building complies with all building codes and is safe for use or habitationwww.SKIPtheBULL.com
CERTIFICATE OF REASONABLE VALUE (CRV) Back to top
Usually based on an independent appraisal, a CRV for a particular property establishes the maximum amount which can be secured by a VA mortgagewww.SKIPtheBULL.com
CERTIFICATE OF TITLE Back to top
A document designating the legal owner of a parcel of real estatewww.SKIPtheBULL.com Usually provided by a title or abstract companywww.SKIPtheBULL.com
CERTIFIED GENERAL APPRAISER Back to top
Generally, any professional who has met the local or state requirements, and passed the appropriate certification exam, and is capable of appraising any type of propertywww.SKIPtheBULL.com
CERTIFIED RESIDENTIAL APPRAISER Back to top
A sub-classification of appraiser who is only licensed to appraise residential property, usually up to four unitswww.SKIPtheBULL.com
CHAIN OF TITLE Back to top
The complete history of ownership of a piece of propertywww.SKIPtheBULL.com
CHATTEL Back to top
Any personal property which is not attached to or an integral part of a propertywww.SKIPtheBULL.com Chattel is not commonly taken into consideration when appraising the value of real propertywww.SKIPtheBULL.com
CIRCUIT BREAKERS Back to top
Electrical devices which automatically open electrical circuits if they are overloadedwww.SKIPtheBULL.com
CLEAR TITLE Back to top
Ownership of property that is not encumbered by any counter-claim or lienwww.SKIPtheBULL.com
CLOSING Back to top
A torturous process designed to induce cramping in a home buyer's hands by requiring signature on countless pieces of documentation that nobody has ever readwww.SKIPtheBULL.com Or, the process whereby the sale of a property is consummated with the buyer completing all applicable documentation, including signing the mortgage obligation and paying all appropriate costs associated with the sale (CLOSING COSTS)www.SKIPtheBULL.com
CLOSING COSTS Back to top
All appropriate costs generated by the sale of property which the parties must pay to complete the transactionwww.SKIPtheBULL.com Costs may include appraisal fees, origination fees, title insurance, taxes and any points negotiated in the dealwww.SKIPtheBULL.com
CLOSING STATEMENT Back to top
The document detailing the final financial arrangement between a buyer and seller and the costs paid by eachwww.SKIPtheBULL.com
CO-BORROWER Back to top
A second person sharing obligation on the loan and title on the propertywww.SKIPtheBULL.com
COLLATERAL Back to top
An asset which is placed at risk to secure the repayment of a loanwww.SKIPtheBULL.com
COLLECTION Back to top
The process a lender takes to pursue a borrower who is delinquent on his payments in order to bring the mortgage current againwww.SKIPtheBULL.com Includes documentation that may be used in foreclosurewww.SKIPtheBULL.com
CO-MAKER Back to top
A second party who signs a loan, along with the borrower, and becomes liable for the debt should the borrower defaultwww.SKIPtheBULL.com
COMMON LAW Back to top
As opposed to statute lawwww.SKIPtheBULL.com Laws that have been established by custom, usage and courts over many yearswww.SKIPtheBULL.com
COMMISSION Back to top
A percentage of the sales price or a fixed fee negotiated by an agent to compensate for the effort expended to sell or purchase propertywww.SKIPtheBULL.com
COMMON AREA ASSESSMENTS Back to top
Fees which are charged to the tenets or owners of properties to cover the costs of maintaining areas shared with other tenets or ownerswww.SKIPtheBULL.com Commonly found in condominium, PUD or office spaceswww.SKIPtheBULL.com
COMMON AREAS Back to top
Any areas, such as entryways, foyers, pools, recreational facilities or the like, which are shared by the tenets or owners of property near bywww.SKIPtheBULL.com Commonly found in condominium, PUD or office spaceswww.SKIPtheBULL.com
COMMUNITY PROPERTY Back to top
In many jurisdictions, any property which has been acquired by a married couplewww.SKIPtheBULL.com The ownership of the property is considered equal unless stipulated otherwise by both partieswww.SKIPtheBULL.com
COMPARABLES Back to top
An abbreviated term used by appraisers to describe properties which are similar in size, condition, location and amenities to a subject property whose value is being determinedwww.SKIPtheBULL.com The Uniform Standards of Professional Appraisal Practice (USPAP) establish clear guidelines for determining a comparable propertywww.SKIPtheBULL.com
COMPOUND INTEREST Back to top
Interest paid on the principal amount, as well as any accumulated interestwww.SKIPtheBULL.com
CONCESSIONS Back to top
Additional value granted by a buyer or seller to entice another party to complete a dealwww.SKIPtheBULL.com
CONDEMNATION Back to top
The official process by which a property is deemed to be uninhabitable or unusable due to internal damage or other external conditionswww.SKIPtheBULL.com
CONDENSATION Back to top
The transition of water vapor to liquidwww.SKIPtheBULL.com Typically forms in areas of high humiditywww.SKIPtheBULL.com
CONDOMINIUM Back to top
A development where individual units are owned, but common areas and amenities are shared equally by all ownerswww.SKIPtheBULL.com
CONDOMINIUM CONVERSION Back to top
Commonly, the conversion of a rental property such as an apartment complex into a CONDOMINIUM-style complex where each unit is owned rather than leasedwww.SKIPtheBULL.com
CONDUIT Back to top
The pipe through which electric wiring is runwww.SKIPtheBULL.com
CONSTRUCTION LOAN Back to top
A loan made to a builder or home owner that finances the initial construction of a property, but is replaced by a traditional mortgage one the property is completedwww.SKIPtheBULL.com
CONTIGUOUS Back to top
Connected to or touching along an unbroken boundarywww.SKIPtheBULL.com
CONTINGENCY Back to top
Something that must occur before something else happenswww.SKIPtheBULL.com Often used in real estate sales when a buyer must sell a current home before purchasing a new onewww.SKIPtheBULL.com Or, when a buyer makes an offer that requires a complete home inspection before it becomes officialwww.SKIPtheBULL.com
CONTRACT Back to top
A legally binding agreement, oral or written, between two partieswww.SKIPtheBULL.com
CONVENTIONAL MORTGAGE Back to top
A traditional, real estate financing mechanism that is not backed by any government or other agency (FHA, VA, etcwww.SKIPtheBULL.com)www.SKIPtheBULL.com
CONVERTIBLE ARM Back to top
A mortgage that begins as and adjustable, that allows the borrower to convert the loan to a fixed rate within a specific timeframewww.SKIPtheBULL.com
COOPERATIVE (CO-OP) Back to top
A form of ownership where each resident of a multiunit property owns a share in a cooperative corporation that owns the buildingwww.SKIPtheBULL.com With each resident having rights to a specific unit within the buildingwww.SKIPtheBULL.com
CORPORATE RELOCATION Back to top
A situation where a person's employer pays all or some of the expenses associated with moving from one location to another, usually over a substantial distancewww.SKIPtheBULL.com Relocation expenses often include the amounts, such as brokerage fees, incurred in the selling and buying of the employee's primary residencewww.SKIPtheBULL.com
COST OF FUNDS INDEX (COFI) Back to top
An index of financial institutions costs used to set interest rates for some Adjustable Rate Mortgageswww.SKIPtheBULL.com
COVENANT Back to top
A stipulation in any mortgage that, if not met, can be cause for the lender to foreclosewww.SKIPtheBULL.com
CREDIT Back to top
A loan of money for the purchase of property, real or personalwww.SKIPtheBULL.com Credit is either secured by an asset, such as a home, or unsecuredwww.SKIPtheBULL.com
CREDIT HISTORY Back to top
A record of debt payments, past and presentwww.SKIPtheBULL.com Used by mortgage lenders in determining credit worthiness of individualswww.SKIPtheBULL.com
CREDITOR Back to top
A person to whom money is owedwww.SKIPtheBULL.com
CREDIT REPORT Back to top
A detailed report of an individuals credit, employment and residence history prepared by a credit bureauwww.SKIPtheBULL.com Used by lenders to determine credit worthiness of individualswww.SKIPtheBULL.com
CREDIT REPOSITORY Back to top
Large companies that gather and store financial and credit information about individuals who apply for creditwww.SKIPtheBULL.com
CUL-DE-SAC Back to top
A dead-end streetwww.SKIPtheBULL.com One with only one entrance/exitwww.SKIPtheBULL.com
DATE OF APPRAISAL Back to top
The specific point in time as of which an appraiser designates the value of a homewww.SKIPtheBULL.com Often stipulated as the date of inspectionwww.SKIPtheBULL.com
DEBT Back to top
An obligation to repay some amount owedwww.SKIPtheBULL.com This may or may not be monetarywww.SKIPtheBULL.com
DEBT EQUITY RATIO Back to top
The ratio of the amount a mortgagor still owes on a property to the amount of equity they have in the homewww.SKIPtheBULL.com Equity is calculated at the fair-market value of the home, less any outstanding mortgage debtwww.SKIPtheBULL.com
DEED Back to top
A document indicating the ownership of a propertywww.SKIPtheBULL.com
DEED-IN-LIEU (OF FORECLOSURE) Back to top
A document given by a borrower to a lender, transferring title of the propertywww.SKIPtheBULL.com Often used to avoid credit-damaging foreclosure procedureswww.SKIPtheBULL.com
DEED OF TRUST Back to top
A document which transfers title in a property to a trustee, whose obligations and powers are stipulatedwww.SKIPtheBULL.com Often used in mortgage transactionswww.SKIPtheBULL.com
DEED OF RECONVEYANCE Back to top
A document which transfers ownership of a property from a Trustee back to a borrower who has fulfilled the obligations of a mortgagewww.SKIPtheBULL.com
DEED OF RELEASE Back to top
A document which dismisses a lien or other claim on a propertywww.SKIPtheBULL.com
DEED OF SURRENDER Back to top
A document used to surrender any claim a person has to a propertywww.SKIPtheBULL.com
DEFAULT Back to top
The condition in which a borrower has failed to meet the obligations of a loan or mortgagewww.SKIPtheBULL.com
DELINQUENCY Back to top
The state in which a borrow has failed to meet payment obligations on timewww.SKIPtheBULL.com
DEPOSIT Back to top
Cash given along with an offer to purchase property, Also called EARNEST MONEYwww.SKIPtheBULL.com
DEPRECIATION Back to top
The natural decline in property value due to market forces or depletion of resourceswww.SKIPtheBULL.com
DETACHED SINGLE-FAMILY HOME Back to top
A single building improvement intended to serve as a home for one familywww.SKIPtheBULL.com
DISCOUNT POINTS Back to top
Points paid in addition to the loan origination fee to get a lower interest ratewww.SKIPtheBULL.com One point is equal to one percent of the loan amountwww.SKIPtheBULL.com
DISTRESSED PROPERTY Back to top
A mortgaged property which has been foreclosed onwww.SKIPtheBULL.com
DOWNSPOUT Back to top
The pipe that water moves through to reach the ground from the rain gutterwww.SKIPtheBULL.com
DUE-ON-SALE PROVISION Back to top
A clause in a mortgage giving the lender the right to demand payment of the full balance when the borrower sells the propertywww.SKIPtheBULL.com
DUPLEX Back to top
A single-building improvement which is divided and provides two units which serve as homes to two familieswww.SKIPtheBULL.com
DWELLING Back to top
A house or other building which serves as a homewww.SKIPtheBULL.com
DOWN PAYMENT Back to top
An amount paid in cash for a property, with the intent to mortgage the remaining amount duewww.SKIPtheBULL.com
EARNEST MONEY DEPOSIT Back to top
A cash deposit made to a home seller to secure an offer to buy the propertywww.SKIPtheBULL.com This amount is often forfeited if the buyer decides to withdraw his offerwww.SKIPtheBULL.com
EASEMENT Back to top
The right of a non-owner of property to exert control over a portion or all of the propertywww.SKIPtheBULL.com For example, power companies often own an easement over residential properties for access to their power lineswww.SKIPtheBULL.com
EAVE Back to top
The part of the roof that extends beyond the exterior wallwww.SKIPtheBULL.com
ECONOMIC DEPRECIATION Back to top
The decline in property value caused by external forces, such as neighborhood blight or adverse developmentwww.SKIPtheBULL.com
ECONOMIC LIFE Back to top
The amount of time which any income-producing property is able to provide benefits to its ownerwww.SKIPtheBULL.com
EFFECTIVE AGE Back to top
The subjective, estimated age of a property based on its condition, rather than the actual time since it was builtwww.SKIPtheBULL.com Excessive wear and tear can cause a property's effective age to be greater than its actual agewww.SKIPtheBULL.com
EMINENT DOMAIN Back to top
The legal process whereby a government can take ownership of a piece of property in order to convert it to public usewww.SKIPtheBULL.com Often, the property owner is paid fair-market value for the propertywww.SKIPtheBULL.com
ENCROACHMENT Back to top
A building or other improvement on one property which invades another property or restricts its usagewww.SKIPtheBULL.com
ENCUMBRANCE Back to top
A claim against a propertywww.SKIPtheBULL.com Examples are mortgages, liens and easementswww.SKIPtheBULL.com
ENERGY EFFICIENCY RATIO Back to top
An efficiency rating system for air conditioning units that corresponds to the number of BTU's output per watt of electricity usedwww.SKIPtheBULL.com
EQUAL CREDIT OPPORTUNITY ACT (ECOA) Back to top
Uwww.SKIPtheBULL.comSwww.SKIPtheBULL.com federal law requiring that lenders afford people equal chance of getting credit without discrimination based on race, religion, age, sex etc
EQUITY Back to top
The difference between the fair market value of a property and that amount an owner owes on any mortgages or loans secured by the propertywww.SKIPtheBULL.com
EQUITY BUILDUP Back to top
The natural increase in the amount of equity an owner has in a property, accumulated through market appreciation and debt repaymentwww.SKIPtheBULL.com
ERRORS AND OMISSIONS INSURANCE Back to top
An insurance policy taken out by appraisers to cover their liability for any mistakes made during the appraisal processwww.SKIPtheBULL.com
ESCROW Back to top
An amount retained by a third party in a trust to meet a future obligationwww.SKIPtheBULL.com Often used in the payment of annual taxes or insurance for real propertywww.SKIPtheBULL.com
ESCROW ACCOUNT Back to top
An account setup by a mortgage servicing company to hold funds with which to pay expenses such as homeowners insurance and property taxeswww.SKIPtheBULL.com An extra amount is paid with regular principal and interest payments that go into the escrow account each monthwww.SKIPtheBULL.com
ESCROW ANALYSIS Back to top
An analysis performed by the lender usually once each year to see that the amount of money going into the escrow account each month is correct for the forecasted expenseswww.SKIPtheBULL.com
ESCROW DISBURSEMENTS Back to top
The payout of funds from an escrow account to pay property expenses such as taxes and insurancewww.SKIPtheBULL.com
ESTATE Back to top
The total of all property and assets owned by an individualwww.SKIPtheBULL.com
EXAMINATION OF TITLE Back to top
The report on the title of a property from the public records or an abstract of the titlewww.SKIPtheBULL.com
EXCLUSIVE LISTING Back to top
An agreement between the owner of a property and a real estate agent giving the agent exclusive right to sell the propertywww.SKIPtheBULL.com
EXECUTOR Back to top
The person named in a will to administer the estatewww.SKIPtheBULL.com
FACADE Back to top
The front exposure of any buildingwww.SKIPtheBULL.com Often used to describe an artificial or false front which is not consistent with the construction of the rest of the buildingwww.SKIPtheBULL.com
FAIR CREDIT REPORTING ACT Back to top
A federal law regulating the way credit agencies disclose consumer credit reports and the remedies available to consumers for disputing and correcting mistakes on their credit historywww.SKIPtheBULL.com
FAIR MARKET VALUE Back to top
The price at which two unrelated parties, under no duress, are willing to transact businesswww.SKIPtheBULL.com
FANNIE MAE Back to top
A private, shareholder-owned company that works to make sure mortgage money is available for people to purchase homeswww.SKIPtheBULL.com Created by Congress in 1938, Fannie Mae is the nation's largest source of financing for home mortgageswww.SKIPtheBULL.com
FASCIA Back to top
The boards that enclose the eaveswww.SKIPtheBULL.com
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) Back to top
The Uwww.SKIPtheBULL.comSwww.SKIPtheBULL.com Government agency created in 1933 which maintains the stability of and public confidence in the nation's financial system by insuring deposits and promoting safe and sound banking practiceswww.SKIPtheBULL.com
FEDERAL HOUSING ADMINISTRATION (FHA) Back to top
A sub-agency of the Uwww.SKIPtheBULL.comSwww.SKIPtheBULL.com Department of Housing and Urban Development created in the 1930's to facilitate the purchase of homes by low-income, first-time home buyerswww.SKIPtheBULL.com It currently provides federally-subsidized mortgage insurance for private lenderswww.SKIPtheBULL.com
FEE APPRAISER Back to top
A certified, professional appraiser who forms an opinion of the fair market value of property and receives a set fee in exchangewww.SKIPtheBULL.com
FEE SIMPLE Back to top
A complete, unencumbered ownership right in a piece of propertywww.SKIPtheBULL.com
FEE SIMPLE ESTATE Back to top
A form or ownership, or holding title to real estatewww.SKIPtheBULL.com It is the most complete form of title, having an unconditional and unlimited interest of perpetual durationwww.SKIPtheBULL.com
FHA MORTGAGE Back to top
A mortgage that is insured by the Federal Housing Administration (FHA)www.SKIPtheBULL.com
FINAL VALUE ESTIMATE Back to top
The opinion of value of a piece of property resulting from an appraisal following the USPAP guidelineswww.SKIPtheBULL.com
FIRST MORTGAGE Back to top
The primary loan or mortgage secured by a piece of propertywww.SKIPtheBULL.com
FIXED-RATE MORTGAGE (FRM) Back to top
A mortgage which has a fixed rate of interest over the life of the loanwww.SKIPtheBULL.com
FIXTURE Back to top
Any piece of personal property which becomes permanently affixed to a piece of real propertywww.SKIPtheBULL.com
FLASHING Back to top
The metal used around the base of roof mounted equipment, or at the junction of angles used to prevent leakingwww.SKIPtheBULL.com
FLOOD INSURANCE Back to top
Supplemental insurance which covers a home owner for any loss due to water damage from a floodwww.SKIPtheBULL.com Often required by lenders for homes located in FEMA-designated flood zoneswww.SKIPtheBULL.com
FLOOR PLAN Back to top
The representation of a building which shows the basic outline of the structure, as well as detailed information about the positioning of rooms, hallways, doors, stairs and other featureswww.SKIPtheBULL.com Often includes detailed information about other fixtures and amenitieswww.SKIPtheBULL.com
FLUE Back to top
The furnace exhaust pipe, usually going through the roofwww.SKIPtheBULL.com
FLUSH VALVE Back to top
The valve between the toilet bowl and the tankwww.SKIPtheBULL.com
FOOTING Back to top
The partially buried support for a vertical structural member such as a postwww.SKIPtheBULL.com
FORECLOSURE Back to top
The process whereby a lender can claim the property used by a borrower to secure a mortgage and sell the property to meet the obligations of the loanwww.SKIPtheBULL.com
FORFEITURE Back to top
The loss of property or money due to the failure to meet the obligations of a mortgage or loan secured by that propertywww.SKIPtheBULL.com
FOUNDATION Back to top
The solid structural element upon which a structure is builtwww.SKIPtheBULL.com
FRONTAGE Back to top
The segment of a property that runs along a point of access, such as a street or water frontwww.SKIPtheBULL.com
FUNCTIONAL OBSOLESCENCE Back to top
A decrease in the value of property due to a feature or lack thereof which renders the property undesirablewww.SKIPtheBULL.com Functional obsolescence can also occur when the surrounding area changes, rendering the property unusable for its originally intended purposewww.SKIPtheBULL.com
GABLE ROOF Back to top
A steeply angled, triangular roofwww.SKIPtheBULL.com
GALVANIZED PIPE Back to top
Iron pipe with a galvanized (zinc) coatingwww.SKIPtheBULL.com
GAMBREL ROOF Back to top
A ''barn-like'' roof, where the upper portion of the roof is less-steeply angled than the lower partwww.SKIPtheBULL.com
GENERAL LIEN Back to top
A broad-based claim against several properties owned by a defaulting partywww.SKIPtheBULL.com
GEORGIAN Back to top
A classic, English-style hose characterized by simple rectangular shape and multiple storieswww.SKIPtheBULL.com
GFI Back to top
Ground Fault Interrupterwww.SKIPtheBULL.com A type of circuit breaker required in areas where water is presentwww.SKIPtheBULL.com
GINNIE MAE Back to top
A wholly owned corporation created in 1968 within the Uwww.SKIPtheBULL.comSwww.SKIPtheBULL.com Department of Housing and Urban Development to serve low-to moderate-income homebuyerswww.SKIPtheBULL.com
GIRDER Back to top
A main supporting beamwww.SKIPtheBULL.com
GOVERNMENT MORTGAGE Back to top
Any mortgage insured by a government agency, such as the FHA or VAwww.SKIPtheBULL.com
GRADE Back to top
The slope of land around a buildingwww.SKIPtheBULL.com Also ground levelwww.SKIPtheBULL.com
GRANTEE Back to top
Any person who is given ownership of a piece of propertywww.SKIPtheBULL.com
GRANTOR Back to top
Any person who gives away ownership of a piece of propertywww.SKIPtheBULL.com
GROSS AREA Back to top
The sum total of all floor space, including areas such as stairways and closet spacewww.SKIPtheBULL.com Often measured based on external wall lengthswww.SKIPtheBULL.com
GROUTING Back to top
Material used around ceramic tilewww.SKIPtheBULL.com
GUTTER Back to top
The trough around the edge of the roof that catches and diverts rainwww.SKIPtheBULL.com
HALF-SECTION Back to top
320 acreswww.SKIPtheBULL.com
HAZARD INSURANCE Back to top
Insurance covering damage to a property caused by hazards such as fire, wind and accidentwww.SKIPtheBULL.com
HEADER Back to top
The framing elements above an opening such as a window or doorwww.SKIPtheBULL.com
HEARTH Back to top
The floor of a fireplace or the area immediately in front of itwww.SKIPtheBULL.com
HEIGHT ZONING Back to top
A municipal restriction on the maximum height of any building or other structurewww.SKIPtheBULL.com
HIDDEN AMENITIES Back to top
Assets of a property which contribute to its value, but are not readily apparentwww.SKIPtheBULL.com Examples might include upgraded or premium building materialswww.SKIPtheBULL.com
HIGHEST AND BEST USE Back to top
The most profitable and likely use of a propertywww.SKIPtheBULL.com Selected from reasonably probable and legal alternative uses, which are found to be physically possible, appropriately supported and financially feasible to result in the highest possible land valuewww.SKIPtheBULL.com
HOME EQUITY CONVERSION MORTGAGE (HECM) Back to top
Also known as a reverse annuity mortgagewww.SKIPtheBULL.com It allows home owners (usually older) to convert equity in the home into cashwww.SKIPtheBULL.com Normally paid by the lender in monthly paymentswww.SKIPtheBULL.com HECM's typically do not have to be repaid until the borrower is no longer occupying the homewww.SKIPtheBULL.com
HOME EQUITY LINE OF CREDIT Back to top
A type of mortgage loan that allows the borrower to draw cash against the equity in his homewww.SKIPtheBULL.com
HOME INSPECTION Back to top
A complete examination of a building to determine its structural integrity and uncover any defects in materials or workmanship which may adversely affect the property or decrease its valuewww.SKIPtheBULL.com
HOME INSPECTOR Back to top
A person who performs professional home inspectionswww.SKIPtheBULL.com Usually, with an extensive knowledge of house construction methods, common house problems, how to identify those problems and how to correct themwww.SKIPtheBULL.com
HOMEOWNER'S ASSOCIATION Back to top
An organization of home owners in a particular neighborhood or development formed to facilitate the maintenance of common areas and to enforce any building restrictions or covenantswww.SKIPtheBULL.com
HOMEOWNER'S INSURANCE Back to top
A policy which covers a home owner for any loss of property due to accident, intrusion or hazardwww.SKIPtheBULL.com
HOMEOWNER'S WARRANTY Back to top
An insurance policy covering the repair of systems and appliances within the home for the coverage periodwww.SKIPtheBULL.com
HUD MEDIAN INCOME Back to top
Median family income for a particular county or metropolitan statistical area (MSA), as estimated by the Department of Housing and Urban Development (HUD)www.SKIPtheBULL.com
HUD-1 STATEMENT Back to top
A standardized, itemized list, published by the Uwww.SKIPtheBULL.comSwww.SKIPtheBULL.com Department of Housing and Urban Development (HUD), of all anticipated CLOSING COSTS connected with a particular property purchasewww.SKIPtheBULL.com
IMPROVED LAND Back to top
Any parcel of land which has been changed from its natural state through the creation of roads, buildings or other structureswww.SKIPtheBULL.com
IMPROVEMENTS Back to top
Any item added to vacant land with the intent of increasing its value or usabilitywww.SKIPtheBULL.com
IMPROVEMENT RATIO Back to top
The comparative value of an improved piece of land to its natural, unaltered statewww.SKIPtheBULL.com
INCOME APPROACH Back to top
The process of estimating the value of property by considering the present value of a stream of income generated by the propertywww.SKIPtheBULL.com
INCOME PROPERTY Back to top
A piece of property whose highest and best use is the generation of income through rents or other sourceswww.SKIPtheBULL.com
INDEPENDENT APPRAISAL Back to top
An estimation of value created by a professional, certified appraiser with no vested interest in the value of the propertywww.SKIPtheBULL.com
INSPECTION Back to top
The examination of a piece of property, its buildings or other amenitieswww.SKIPtheBULL.com
INSURABLE TITLE Back to top
The title to property which has been sufficiently reviewed by a title insurance company, such that they are willing to insure it as free and clearwww.SKIPtheBULL.com
INTEREST RATE Back to top
A percentage of a loan or mortgage value that is paid to the lender as compensation for loaning fundswww.SKIPtheBULL.com
INVESTMENT PROPERTY Back to top
Any piece of property that is expected to generate a financial returnwww.SKIPtheBULL.com This may come as the result of periodic rents or through appreciation of the property value over timewww.SKIPtheBULL.com
JAMB Back to top
The side of a door framewww.SKIPtheBULL.com
JOINT TENANCY Back to top
A situation where two or more parties own a piece of property togetherwww.SKIPtheBULL.com Each of the owners has an equal share, and may not dispose of or alter that share without the consent of the other ownerswww.SKIPtheBULL.com
JOISTS Back to top
Horizontal beams laid on edge to support flooring or a ceilingwww.SKIPtheBULL.com
JUDGMENT Back to top
An official court decisionwww.SKIPtheBULL.com If the judgment requires payment from one party to another, the court may put a lien against the payee's property as collateralwww.SKIPtheBULL.com
JUDICIAL FORECLOSURE Back to top
A type of foreclosure conducted as a civil suit in a court of lawwww.SKIPtheBULL.com
JUMBO LOAN Back to top
A mortgage loan for an amount greater than the limits set by Fannie Mae and Freddie Macwww.SKIPtheBULL.com Often called non-conforming loanswww.SKIPtheBULL.com
LALLY COLUMN Back to top
A concrete filled steel pipe used to support beamswww.SKIPtheBULL.com
LATE CHARGE Back to top
An extra charge, or penalty added to a regular mortgage payment when the payment is made late by an amount of time specified in the original loan documentwww.SKIPtheBULL.com
LATENT DEFECTS Back to top
Any defect in a piece of property which is not readily apparent, but which has an impact of the valuewww.SKIPtheBULL.com Structural damage or termite infestation would be examples of latent defectswww.SKIPtheBULL.com
LEASE Back to top
A contract between a property owner and a tenant specifying the payment amount, terms and conditions, as well as the length of time the contract will be in forcewww.SKIPtheBULL.com
LEASEHOLD ESTATE Back to top
A type of property ''ownership'' where the buyer actually has a long-term lease on the propertywww.SKIPtheBULL.com
LEASE OPTION Back to top
A lease agreement that gives the tenant an option to buy the propertywww.SKIPtheBULL.com Usually, a portion of the regular monthly rent payment will be applied towards the down paymentwww.SKIPtheBULL.com
LEGAL DESCRIPTION Back to top
The description of a piece of property, identifying its specific location in terms established by the municipality or other jurisdiction in which the property resideswww.SKIPtheBULL.com Often related in specific distances from a known landmark or intersectionwww.SKIPtheBULL.com
LENDER Back to top
The person or entity who loans funds to a buyerwww.SKIPtheBULL.com In return, the lender will receive periodic payments, including principal and interest amountswww.SKIPtheBULL.com
LIABILITIES Back to top
A person's outstanding debt obligationswww.SKIPtheBULL.com
LIABILITY INSURANCE Back to top
Insurance that covers against potential lawsuit brought against a property owner for alleged negligence resulting in damage to another partywww.SKIPtheBULL.com
LIEN Back to top
Any claim against a piece of property resulting from a debt or other obligationwww.SKIPtheBULL.com
LIFE CAP Back to top
A limit on how far the interest rate can move for an Adjustable Rate Mortgagewww.SKIPtheBULL.com
LIKE-KIND PROPERTY Back to top
Any property which is substantially similar to another propertywww.SKIPtheBULL.com
LINE OF CREDIT Back to top
An extension of credit for a certain amount for a specific amount of timewww.SKIPtheBULL.com To be used by the borrower at his discretionwww.SKIPtheBULL.com
LIQUID ASSET Back to top
Any asset which can be quickly converted into cash at little or no cost, or cash itselfwww.SKIPtheBULL.com
LOAN Back to top
Money borrowed, to be repaid with interest, according to the specific terms and conditions of the loanwww.SKIPtheBULL.com
LOAN OFFICER Back to top
A person that "sells" loans, representing the lender to the borrower, and the borrower to the lenderwww.SKIPtheBULL.com
LOAN ORIGINATION Back to top
How a lender refers to the process of writing new loanswww.SKIPtheBULL.com
LOAN SERVICING Back to top
The processing of payments, mailing of monthly statements, management and disbursement of escrow funds etc Typically carried out by the company you make payments towww.SKIPtheBULL.com
LOAN-TO-VALUE RATIO (LTV) Back to top
The comparison of the amount owed on a mortgaged property to its fair market valuewww.SKIPtheBULL.com
LOCK-IN Back to top
An agreement between a lender and a borrower, guaranteeing an interest rate for a loan if the loan is closed within a certain amount of timewww.SKIPtheBULL.com
LOCK-IN PERIOD Back to top
The amount of time the lender has guaranteed an interest rate to a borrowerwww.SKIPtheBULL.com
MAJOR DEFICIENCY Back to top
A deficiency that strongly impacts the usability and habitability of a housewww.SKIPtheBULL.com Or a deficiency that may be very expensive to repairwww.SKIPtheBULL.com
MANUFACTURED HOUSING Back to top
Once known as ''mobile homes,'' manufactured housing is any building which has been constructed off site, then moved onto a piece of real propertywww.SKIPtheBULL.com
MARGIN Back to top
The difference between the interest rate and the index on an adjustable rate mortgagewww.SKIPtheBULL.com
MARGINAL LAND Back to top
Land whose value has been diminished due to some internal defect or external conditionwww.SKIPtheBULL.com In most cases, the cost to correct the flaw or condition is as much or more than the expected return from the propertywww.SKIPtheBULL.com
MASTER ASSOCIATION Back to top
An umbrella organization that is made up of multiple, smaller home owner's associationswww.SKIPtheBULL.com Often found in very large developments or condominium projectswww.SKIPtheBULL.com
MATURITY Back to top
The date on which the principal balance of a financial instrument becomes due and payablewww.SKIPtheBULL.com
MERGED CREDIT REPORT Back to top
A credit report derived from data obtained from multiple credit agencieswww.SKIPtheBULL.com
METES AND BOUNDS Back to top
A traditional way of describing property, generally expressed in terms of distance from a known landmark or intersection, and then following the boundaries of the property back to its originwww.SKIPtheBULL.com
METROPOLITAN AREA Back to top
The accumulated land in and around a city or other municipality which falls under the political and economic influence of that entitywww.SKIPtheBULL.com
MINERAL RIGHTS Back to top
The legal right to exploit and enjoy the benefits of any minerals located below the surface of a parcel of landwww.SKIPtheBULL.com
MISREPRESENTATION Back to top
A statement by one party in a transaction that is incorrect or misleadingwww.SKIPtheBULL.com Most misrepresentations are deemed to be intentional and thus may constitute fraudwww.SKIPtheBULL.com Others, however, some are rendered through simple mistakes, oversights or negligencewww.SKIPtheBULL.com
MORTGAGE Back to top
A financial arrangement wherein an individual borrows money to purchase real property and secures the loan with the property as collateralwww.SKIPtheBULL.com
MORTGAGE BANKER Back to top
A financial institution that provides primary and secondary mortgages to home buyerswww.SKIPtheBULL.com
MORTGAGE BROKER Back to top
A person or organization that serves as a middleman to facilitate the mortgage processwww.SKIPtheBULL.com Brokers often represent multiple mortgage bankers and offer the most appropriate deal to each buyerwww.SKIPtheBULL.com
MORTGAGEE Back to top
The entity that lends money in a real estate transactionwww.SKIPtheBULL.com
MORTGAGE INSURANCE Back to top
A policy that fulfills those obligations of a mortgage when the policy holder defaults or is no longer able to make paymentswww.SKIPtheBULL.com
MORTGAGE INSURANCE PREMIUM (MIP) Back to top
A fee that is often included in mortgage payments that pays for mortgage insurance coveragewww.SKIPtheBULL.com
MORTGAGE LIFE INSURANCE Back to top
A policy that fulfills the obligations of a mortgage when the policy holder dieswww.SKIPtheBULL.com
MORTGAGOR Back to top
The entity that borrows money in a real estate transactionwww.SKIPtheBULL.com
MULTI-FAMILY PROPERTIES Back to top
Any collection of buildings that are designed and built to support the habitation of more than four familieswww.SKIPtheBULL.com
NATIONAL ASSOCIATION OF MASTER APPRAISERS (NAMA) Back to top
A non profit professional association organized in 1982, dedicated to the advancement of professionalism in real estate appraisalwww.SKIPtheBULL.com
NATIONAL SOCIETY OF REAL ESTATE APPRAISERS Back to top
An organization founded in 1956 which promotes standards of professionalism in its memberswww.SKIPtheBULL.com
NATURAL VACANCY RATE Back to top
The percentage of vacant properties in a given area that is the result of natural turnover and market forceswww.SKIPtheBULL.com
NEGATIVE AMORTIZATION Back to top
When the balance of a loan increases instead of decreaseswww.SKIPtheBULL.com Usually due to a borrower making a minimum payment on an Adjustable Rate Mortgage during a period when the rate fluctuates to a high enough point that the minimum payment does not cover all of the interestwww.SKIPtheBULL.com
NEIGHBORHOOD LIFE-CYCLE Back to top
The evolution of neighborhood use and demographics over timewww.SKIPtheBULL.com Economic fluctuations, municipal zoning changes and population shifts can effect the life cyclewww.SKIPtheBULL.com
NEIGHBORHOOD Back to top
A subsection of a municipality that has been designated by a developer, economic forces or physical formationswww.SKIPtheBULL.com
NET LEASABLE AREA Back to top
The space in a development, outside of the common areas, that can be rented to tenantswww.SKIPtheBULL.com
NEW ENGLAND COLONIAL Back to top
An architectural style dating from early American history typified by a two-story building with clapboard sidingwww.SKIPtheBULL.com
NO-COST LOAN Back to top
Many lenders offer loans that you can obtain at "no costwww.SKIPtheBULL.com" You should inquire whether this means there are no "lender" costs associated with the loan, or if it also covers the other costs you would normally have in a purchase or refinance transactions, such as title insurance, escrow fees, settlement fees, appraisal, recording fees, notary fees, and otherswww.SKIPtheBULL.com These are fees and costs which may be associated with buying a home or obtaining a loan, but not charged directly by the lenderwww.SKIPtheBULL.com Keep in mind that, like a "no-point" loan, the interest rate will be higher than if you obtain a loan that has costs associated with itwww.SKIPtheBULL.com
NO-POINT LOAN Back to top
A loan with no "points"www.SKIPtheBULL.com The interest rate on such a loan will be higher than a loan with points paidwww.SKIPtheBULL.com Also sometimes refers to a refinance loan where closing costs are included in the loanwww.SKIPtheBULL.com
NON-CONFORMING USE Back to top
The use of land for purposes contrary to the applicable municipal zoning specificationswww.SKIPtheBULL.com Often occurs when zoning changes after a property is in usewww.SKIPtheBULL.com
NONLIQUID ASSET Back to top
Any asset which can not be quickly converted into cash at little or no costwww.SKIPtheBULL.com
NOTE Back to top
A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of timewww.SKIPtheBULL.com
NOTE RATE Back to top
The interest rate stated on a mortgage notewww.SKIPtheBULL.com
NOTICE OF DEFAULT Back to top
Formal written notice from a lender to a borrower that default has occurredwww.SKIPtheBULL.com
OBSOLESCENCE Back to top
The process of an assets value diminishing due to the development of more desirable alternatives or because of the degradation of its capabilitieswww.SKIPtheBULL.com
OCCUPANCY Back to top
A physical presence within and control of a propertywww.SKIPtheBULL.com
OCCUPANCY RATE Back to top
The percentage of properties in a given area that are occupiedwww.SKIPtheBULL.com
OCTOPUS RECEPTACLE Back to top
An outlet with too many devices plugged into it, using a power strip or other device to multiply the outletswww.SKIPtheBULL.com
OFF-SITE IMPROVEMENTS Back to top
Buildings, structures or other amenities which are not located on a piece of property, but are necessary to maximize the use of the property or in some way contribute to the value of the propertywww.SKIPtheBULL.com
OFF-STREET PARKING Back to top
Designated parking spaces associated with a particular building or other structure which are not located on public streetswww.SKIPtheBULL.com
OLD TERMITE ACTIVITY Back to top
Where no termites are currently active, but indications of past activity can be seenwww.SKIPtheBULL.com
ON-SITE IMPROVEMENTS Back to top
Buildings, structures or other amenities that are erected on a piece of property and contribute to its valuewww.SKIPtheBULL.com
OPEN SPACE Back to top
Any land which has not had any significant buildings or structures erected on itwww.SKIPtheBULL.com Most often used to describe desirable neighborhood features like parkswww.SKIPtheBULL.com
OPEN SPLICE Back to top
An uncovered electrical connectionwww.SKIPtheBULL.com
ORIGINAL EQUITY Back to top
The amount of cash a home buyer initially invests in the homewww.SKIPtheBULL.com
ORIGINAL PRINCIPAL BALANCE Back to top
The total amount of principal owed on a mortgage loan at the time of closingwww.SKIPtheBULL.com
ORIGINATION FEE Back to top
Refers to the total number of points paid by a borrower at closingwww.SKIPtheBULL.com
OWNER FINANCING Back to top
A transaction where the property owner provides all or part of the financingwww.SKIPtheBULL.com
OWNER OCCUPIED Back to top
The state of property wherein the owner occupies at least some portion of the propertywww.SKIPtheBULL.com
PARGING Back to top
The cement coat applied to block foundationswww.SKIPtheBULL.com
PARTIAL INTEREST Back to top
A shared ownership in a piece of propertywww.SKIPtheBULL.com May be divided among two or more partieswww.SKIPtheBULL.com
PARTIAL PAYMENT Back to top
A payment of less than the regular monthly amountwww.SKIPtheBULL.com Usually, a lender will not accept partial paymentswww.SKIPtheBULL.com
PERIODIC PAYMENT CAP Back to top
The limit on how much regular monthly payments on an Adjustable Rate Mortgage can change during one adjustment periodwww.SKIPtheBULL.com
PERIODIC RATE CAP Back to top
The limit on how much the interest rate on an Adjustable Rate Mortgage can change during any one adjustment periodwww.SKIPtheBULL.com
PERSONAL PROPERTY Back to top
Owned items which are not permanently affixed to the landwww.SKIPtheBULL.com
PERSONAL RESIDENCE Back to top
The primary domicile of a person or familywww.SKIPtheBULL.com
PLANNED UNIT DEVELOPMENT (PUD) Back to top
A coordinated, real estate development where common areas are shared and maintained by an owner's association or other entitywww.SKIPtheBULL.com
PLAT Back to top
A plan or chart of a piece of land which lays out existing or planned streets, lots or other improvementswww.SKIPtheBULL.com
POINT Back to top
A percentage of a mortgage amount (one point = 1 percent)www.SKIPtheBULL.com
PRE-APPROVAL Back to top
The process of applying for a mortgage loan and becoming approved for a certain amount at a certain interest rate before a property has been chosenwww.SKIPtheBULL.com Pre-approval allows the borrower greater freedom in negotiations with sellerswww.SKIPtheBULL.com
PREFABRICATED Back to top
Any building or portion thereof which is manufactured and assembled off site, then erected on a propertywww.SKIPtheBULL.com
PREPAYMENT Back to top
Payment made that reduces the principal balance of a loan before the due date and before the loan has become fully amortizedwww.SKIPtheBULL.com
PREPAYMENT PENALTY Back to top
A fee that may be charged to a borrower who pays off a loan before it is duewww.SKIPtheBULL.com
PRE-QUALIFICATION Back to top
Less formal that pre-approval, pre-qualification usually means a written statement from a loan officer indicating his or her opinion that the borrower will be able to become approved for a mortgage loanwww.SKIPtheBULL.com
PRIME RATE Back to top
The interest rate that banks and other lending institutions charge other banks or preferred customerswww.SKIPtheBULL.com
PRINCIPAL Back to top
The amount owed on a mortgage which does not include interest or other feeswww.SKIPtheBULL.com
PRINCIPAL BALANCE Back to top
The outstanding balance of principal on a mortgagewww.SKIPtheBULL.com Does not included interest duewww.SKIPtheBULL.com
PRINCIPAL, INTEREST, TAXES, AND INSURANCE (PITI) Back to top
The most common constituents of a monthly mortgage paymentwww.SKIPtheBULL.com
PRIVATE MORTGAGE INSURANCE (PMI) Back to top
A form of mortgage insurance provided by private, non-government entitieswww.SKIPtheBULL.com Normally required when the LOAN TO VALUE RATIO is less that 20%www.SKIPtheBULL.com
PROPERTY Back to top
Any item which is owned or possessedwww.SKIPtheBULL.com
PURCHASE AGREEMENT Back to top
A written contract signed by the buyer and seller stating the terms and conditions under which a property will be soldwww.SKIPtheBULL.com
QUADRAPLEX Back to top
Any building designed to accommodate four familieswww.SKIPtheBULL.com
QUALIFYING RATIOS Back to top
Two ratios used in determining credit worthiness for a mortgage loanwww.SKIPtheBULL.com One is the ratio of a borrower's monthly housing costs to monthly incomewww.SKIPtheBULL.com The other is a ratio of all monthly debt to monthly incomewww.SKIPtheBULL.com
QUITCLAIM DEED Back to top
A legal document which transfers any ownership an individual has in a piece of propertywww.SKIPtheBULL.com Often used when the amount of ownership is not known or is unclearwww.SKIPtheBULL.com
RAFTER Back to top
A structural element of the roof, sloping from the peak to the outer wallswww.SKIPtheBULL.com
RANCH HOUSE Back to top
An architectural style typified by a single-story, low-roof constructionwww.SKIPtheBULL.com Popular in the western Uwww.SKIPtheBULL.comSwww.SKIPtheBULL.com
RATE LOCK Back to top
A guarantee from a lender of a specific interest rate for a period of timewww.SKIPtheBULL.com
RAW LAND Back to top
Any land which has not been developedwww.SKIPtheBULL.com
REAL ESTATE Back to top
A piece of land and any improvements or fixtures located on that landwww.SKIPtheBULL.com
REAL ESTATE AGENT Back to top
A licensed professional who facilitates the buying and selling of real estatewww.SKIPtheBULL.com
REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) Back to top
A federal law requiring lenders to give full disclosure of closing costs to borrowerswww.SKIPtheBULL.com
REAL PROPERTY Back to top
Land, improvements and appurtenances, and the interest and benefits thereofwww.SKIPtheBULL.com
REALTOR® Back to top
A real estate agent or broker who is a member of the NATIONAL ASSOCIATION of REALTORS®www.SKIPtheBULL.com
RECEPTACLE Back to top
An electrical outlet to plug intowww.SKIPtheBULL.com
RECORDER Back to top
A local government employee whose role it is to keep records of all real estate transactions within the jurisdictionwww.SKIPtheBULL.com
RECORDING Back to top
The filing of a real estate transaction with the appropriate government agent (normally the RECORDER)www.SKIPtheBULL.com A real estate transaction is considered final when it is recordedwww.SKIPtheBULL.com
REFINANCE TRANSACTION Back to top
A new loan to pay off an existing loanwww.SKIPtheBULL.com Typically to gain a lower interest rate or convert equity into cashwww.SKIPtheBULL.com
REGISTER Back to top
Where air from a furnace or air conditioning system enters the roomwww.SKIPtheBULL.com
RELOCATION SERVICE Back to top
Any company or agency that assists corporate employees in relocating from one place to anotherwww.SKIPtheBULL.com Services may include hiring and coordinating real estate agents, moving companies, utilizes and the likewww.SKIPtheBULL.com
REMAINING BALANCE Back to top
The amount of principal, interest and other costs that has not yet been repaidwww.SKIPtheBULL.com
REMAINING TERM Back to top
The amount of time remaining on the original amortization schedulewww.SKIPtheBULL.com
REMODEL Back to top
An activity designed to improve the value or desirability of a property through rebuilding, refurbishing, redecorating or adding on to itwww.SKIPtheBULL.com
REPAYMENT PLAN Back to top
A plan to repay delinquent payments, agreed upon between a lender and borrower, in an effort to avoid foreclosurewww.SKIPtheBULL.com
REPLACEMENT RESERVE FUND Back to top
An account, or fund, setup for the replacement of short life items, such as carpeting, in the common areas of a cooperative propertywww.SKIPtheBULL.com
RESIDENTIAL PROPERTY Back to top
A piece of property whose highest and best use is the maintenance of a residencewww.SKIPtheBULL.com
REVOLVING DEBT Back to top
A type of credit that allows the borrower/customer to make charges against a predetermined line of creditwww.SKIPtheBULL.com The customer then pays monthly installments on the amount borrowed, plus interestwww.SKIPtheBULL.com
RIDGE BOARD Back to top
The structural member of a roof where the rafters join at the topwww.SKIPtheBULL.com
RIGHT OF FIRST REFUSAL Back to top
An agreement giving a person the first opportunity to buy or lease a property before the owner offers it for sale to otherswww.SKIPtheBULL.com
ROOF PITCH Back to top
The degree of slope in a roofwww.SKIPtheBULL.com
RURAL Back to top
An area outside of an established urban area or metropolitan districtwww.SKIPtheBULL.com
SALE PRICE Back to top
The actual price a property sells for, exclusive of any special financing concessionswww.SKIPtheBULL.com
SALES COMPARISON APPROACH Back to top
An appraisal practice which estimates the value of a property by comparing it to comparable properties which have sold recentlywww.SKIPtheBULL.com
SCARCITY Back to top
An economic principal that dictates the price of a good or service through the interaction of supply and demandwww.SKIPtheBULL.com When an item is scarce, its price tends to rise, given a constant demandwww.SKIPtheBULL.com Real Estate is a classic example of scarcitywww.SKIPtheBULL.com
SECOND MORTGAGE Back to top
A loan secured by the equity in a home, when a primary mortgage already existswww.SKIPtheBULL.com
SECONDARY MORTGAGE MARKET Back to top
An economic marketplace where mortgage bankers buy and sell existing mortgageswww.SKIPtheBULL.com
SECURED LOAN Back to top
A loan that is backed by collateralwww.SKIPtheBULL.com In the case of a mortgage loan, the collateral is the housewww.SKIPtheBULL.com
SECURITY Back to top
The property used as collateral for a loanwww.SKIPtheBULL.com
SEMIDETACHED HOUSING Back to top
Two residences which share a common wallwww.SKIPtheBULL.com
SERVICER Back to top
A financial institution which collects mortgage payments from borrowers and applies the appropriate portions to principal, interest and any escrow accountswww.SKIPtheBULL.com
SERVICING Back to top
The processing of payments, mailing of monthly statements, management and disbursement of escrow funds etc Typically carried out by the company you make payments towww.SKIPtheBULL.com
SHEATHING Back to top
The covering on outside walls beneath the siding or exterior finish such as stuccowww.SKIPtheBULL.com
SHEETROCK Back to top
Also called drywall, the gypsum board commonly used on interior wallswww.SKIPtheBULL.com
SILL PLATE Back to top
The lumber used around the foundation to support exterior wall framingwww.SKIPtheBULL.com
SILL COCK Back to top
Garden hose pipe connectionwww.SKIPtheBULL.com
SINGLE-FAMILY PROPERTY Back to top
A property designed and built to support the habitation of one familywww.SKIPtheBULL.com
SOFFIT Back to top
The underside of a cornice at the eaveswww.SKIPtheBULL.com
STUCCO Back to top
A textured plaster exterior (and occasionally interior) wall finishwww.SKIPtheBULL.com
STUD Back to top
A vertical framing piece in a wall, generally 2x4 lumber in interior wallswww.SKIPtheBULL.com
SUBDIVISION Back to top
A residential development that is created from a piece of land which has been subdivided into individual lotswww.SKIPtheBULL.com
SUBJECT PROPERTY Back to top
A term which indicates a property which is being appraisedwww.SKIPtheBULL.com
SUMP Back to top
A basin into which water drains and from which the water is pumped outwww.SKIPtheBULL.com
SURVEY Back to top
A specific map of a piece of property which includes the legal boundaries and any improvements or features of the landwww.SKIPtheBULL.com Surveys also depict any rights-of-way, encroachments or easementswww.SKIPtheBULL.com
SWEAT EQUITY Back to top
The method whereby a home owner develops equity in a property, either during the purchase or throughout its life, by personally constructing improvements rather than paying to have them builtwww.SKIPtheBULL.com
TAX-EXEMPT PROPERTY Back to top
Any property which is not taxedwww.SKIPtheBULL.com
TENANCY Back to top
The right to occupy a building or unitwww.SKIPtheBULL.com
TENANCY IN COMMON Back to top
A form of holding title, whereby there are two or more people on title to a property, ownership does not pass on to the others upon the death of one individualwww.SKIPtheBULL.com
THIRD PARTY ORIGINATION Back to top
When a lender uses a third party to originate and package loans for sale to the secondary market (Fannie Mae, Freddie Mac)www.SKIPtheBULL.com
TITLE Back to top
A specific document which serves as proof of ownershipwww.SKIPtheBULL.com
TITLE COMPANY Back to top
An organization which researches and certifies ownership of real estate before it is bought or soldwww.SKIPtheBULL.com Title companies also act at the facilitator ensures all parties are paid during the real estate transactionwww.SKIPtheBULL.com
TITLE INSURANCE Back to top
A policy which insures a property owner should a prior claim arise against the property after the purchase has been completedwww.SKIPtheBULL.com This also covers a lender should a question of ownership arisewww.SKIPtheBULL.com
TITLE SEARCH Back to top
The process whereby the TITLE COMPANY researches a properties title history and ensures that no outstanding claims existwww.SKIPtheBULL.com
TRANSFER OF OWNERSHIP Back to top
Any means by which the ownership of a property changes handswww.SKIPtheBULL.com
TRANSFER OF TAX Back to top
Taxes payable when title passes from one owner to anotherwww.SKIPtheBULL.com
TRAP Back to top
A bend in water pipewww.SKIPtheBULL.com
TRUSTEE Back to top
A fiduciary that holds or controls property for the benefit of anotherwww.SKIPtheBULL.com
TRUTH IN LENDING Back to top
A federal law requiring full disclosure by lenders to borrowers of all terms, conditions and costs of a mortgagewww.SKIPtheBULL.com
TUDOR Back to top
A style of architecture typified by exposed stone, wood and brick constructionwww.SKIPtheBULL.com Similar in style to English manor homeswww.SKIPtheBULL.com
UNDER IMPROVED LAND Back to top
A piece of land which has been improved, but not to the full extent of its potentialwww.SKIPtheBULL.com
UNENCUMBERED PROPERTY Back to top
Any property which has no outstanding claims or liens against itwww.SKIPtheBULL.com
UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP) Back to top
Developed in 1986 by the Ad Hoc Committee on Uniform Standards and copyrighted in 1987 by The Appraisal Foundation, USPAP forms the guidelines followed by every licensed and certified real estate appraiser in the United Stateswww.SKIPtheBULL.com The purpose of these Standards is to establish requirements for professional appraisal practice, which includes appraisal, appraisal review, and appraisal consultingwww.SKIPtheBULL.com The intent of these Standards is to promote and maintain a high level of public trust in professional appraisal practicewww.SKIPtheBULL.com
USEFUL LIFE Back to top
The span of time over which a property can be used or can provide benefits to its ownerwww.SKIPtheBULL.com
VACANCY RATE Back to top
The current percentage of vacant properties in a given area, regardless of why they are vacantwww.SKIPtheBULL.com
VA MORTGAGE Back to top
A mortgage that is guaranteed by the Department of Veterans Affairs (VA)www.SKIPtheBULL.com
VARIANCE Back to top
An exception to municipal zoning regulations granted for a specific time period to allow for non-conforming use of the landwww.SKIPtheBULL.com
VENT PIPE Back to top
A pipe allowing gas to escapewww.SKIPtheBULL.com
VESTED Back to top
Having the right to use a portion of a fund such as an IRAwww.SKIPtheBULL.com Typically vesting occurs over timewww.SKIPtheBULL.com If you are 100% vested, you have a right to 100% of the fundwww.SKIPtheBULL.com
VETERANS AFFAIRS, DEPARTMENT OF (VA) Back to top
The successor to the Veteran's Administration, this government agency is responsible for ensuring the rights and welfare of our nation's veterans and their dependentswww.SKIPtheBULL.com Among other duties, the VA insures home loans made to veteranswww.SKIPtheBULL.com
VOLTAGE Back to top
An expression of electric force, or pressurewww.SKIPtheBULL.com One volt being the force needed to move one amp against one ohm resistancewww.SKIPtheBULL.com
WALK-THROUGH INSPECTION Back to top
A process whereby an appraiser examines a property in preparation for estimating its valuewww.SKIPtheBULL.com Also, the process of inspecting a property for any damage prior to that property being bought or soldwww.SKIPtheBULL.com
WARRANTY Back to top
An affidavit given to stipulate the condition of a propertywww.SKIPtheBULL.com The person giving the warranty assumes liability if the condition turns out to be untruewww.SKIPtheBULL.com
WATT Back to top
An expression of amount of electrical powerwww.SKIPtheBULL.com Volt times amps equals wattswww.SKIPtheBULL.com
WEAR AND TEAR Back to top
A term used to indicate the normal damage inflicted on a property through every-day usewww.SKIPtheBULL.com
WEATHER STRIPPING Back to top
Material used around windows and doors to prevent draftswww.SKIPtheBULL.com
WEEP HOLE Back to top
Drainage hole that allows water to escapewww.SKIPtheBULL.com
ZERO LOT LINE Back to top
A municipal zoning category wherein a building or other fixture may abut the property linewww.SKIPtheBULL.com
ZONE Back to top
A specific area within a municipality or other jurisdiction which conforms to certain guidelines regarding the use of property in the zonewww.SKIPtheBULL.com Typical zones include single-family, multi-family, industrial, commercial and mixed-usewww.SKIPtheBULL.com
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