A down payment on a house is a sum of money that the buyer pays upfront in a real estate transaction. The down payment is the amount of cash paid upfront by the buyer at the time of closing.
The loan-to-value ratio, or LTV ratio, is calculated by dividing the amount borrowed by the appraised value of the property, and is expressed as a percentage. The loan-to-value (LTV) ratio shows how much you’re borrowing from a lender as a percentage of your home’s appraised value.
A REALTOR® is a real estate agent or professional who is a member of the National Association of REALTORS®, or NAR®, which is America’s largest professional real estate organization. A REALTOR® is a real estate agent who is professionally licensed to negotiate and coordinate the buying and selling of real estate transactions.
A quitclaim deed is a document transferring ownership of property from one party to another. It transfers the title of the property, but only transfers what the seller actually owns. If two people own a home jointly, one person could only transfer their half of the property via quitclaim.
If you pay a monthly fee towards a Homeowners Association (HOA), part of that fee likely goes toward a common area assessment to maintain an area open to the community.
An adjustable-rate mortgage, or ARM, is a type of mortgage in which the interest rate applied to the outstanding balance varies throughout the life of the loan. At the end of the initial fixed-rate period, ARM interest rates will become variable which could either increase or decrease the borrower’s monthly mortgage payment.
A seller carry-back is financing in which the seller acts as a bank or financial institution financing some or all of the transaction. The buyer will sign a promissory note agreeing to pay a specific amount (like a mortgage) to the seller, and the seller transfers the title to the new owner.
The right of egress is a person’s legal right to exit a property. The right of ingress is the right to enter a property.
In real estate, the lender refers to the individual, financial institution, or private group lending mortgage money to a buyer to purchase property with the expectation the loan will be repaid with interest, in agreed upon increments, by a certain date.