A second mortgage is when a property owner borrows against the value of their home. They are also commonly referred to as HELOCs and draw on the market value of the home to provide the borrower with funds to use however they wish.
A title is a document that shows legal ownership of a property or asset, such as a home. A home’s title represents the rights to the property. Those rights are transferred from the seller to the buyer during a real estate transaction and give the buyer legal rights to the property upon closing.
A transfer tax is a tax charged by a state or local government to complete a sale of property from one owner (seller) to another (buyer). Transfer tax is a transaction fee charged upon the transfer of a property’s title.
A mortgage banker works directly with a lending institution to provide mortgage funds to a borrower. They can only obtain funds from a specific institution and are responsible for each part of the mortgage process, including property evaluation, financial due diligence, and overseeing the application process.
The Home Equity Conversion Mortgage (HECM) is an FHA reverse mortgage program enabling homeowners to withdraw equity on their home through either a fixed monthly payment, a line of credit, or a combination of the two.
In real estate, the term appreciation refers to the increase in the value of a property over time. The simplest way to calculate home appreciation is to divide the change in the home’s value by the initial cost and multiply it by 100. Appreciation is the amount a home increases in value over time.
A no cash-out refinance is a type of loan used to improve the rate the borrower pays on the loan. It might also shorten the lifetime of a loan to benefit the borrower. In a no cash-out refinance, the borrower refinances an existing mortgage for equal to or less than the outstanding loan balance.
If a homeowner doesn’t make a mortgage payment (usually, for more than 90 days), foreclosure is a legal process during which the owner forfeits all property rights. If they are unable to pay off outstanding debt on the property or sell it via short sale, the property enters a foreclosure auction.
The percentage of homes sales in San Diego with a sale price greater than their latest list price. Includes all homes sold within a given time period. Excludes properties with a sale price 50% above the listing price or with a sale price 50% below the list price due to outlier status.
A homeowner’s association, or HOA, is an organization within a subdivision, planned community, or condo building that makes and enforces specific rules for the properties and residents. A homeowner’s association (HOA) is usually found when you purchase a condominium, townhome, or other development property.