Glossary of real estate terms - San Francisco and beyond - Part 1
Below is part 1 - glossary of real estate termsAcceleration Clause:
This gives a lender the right to demand immediate full repayment of a loan if the terms of the loan are not met.
Ad Valorem Tax:
Tax that is based on a property's assessed value.
Agency Disclosure:
Requires real estate agents who act on behalf of the buyers or sellers to disclose who represents whom in a real estate transaction.
Amortization:
When a loan is repaid in equal payments at consistent intervals over the full term of the loan. This results in the complete payoff of the loan by the end of its term.
APR (Annual Percentage Rate):
This is simply your effective interest rate, calculated by taking your actual interest rate and accounting for allt he loan related closing costs, as expressed over the full term of your loan (i.e. 30 years). It was created to help borrowers better compare interest rates offered by lenders.
Arbitration:
A process in which an impartial third party listens to both sides of a dispute and typically issues a binding decision.
As-Is Condition:
The purchase or sale of a property in its exisitng condition.
Balloon Mortgage:
A home loan, although typically set up on a 30-year repayment schedule, requires the remaining balance-called the baloon payment-be paid in the future at a specific time, typically after the first five or seven years.
Closing Costs:
The various expenses above the cost of the property that buyers and sellers incur in a real estate transaction.
*reprinted courtesy of California Real Estate magazine, September 2005 issue
posted by SFResidence.com @ 8:21 AM
0 Comments:
Post a Comment
<< Home