Know the Real Estate Lingo

May 6, 2014
luxury home for sale in the florida keys

Here are some terms you should be familiar with when you are sellling your home:

Adjustable Rate Mortgages – A mortgage that changes interest rates periodically based on changes in a specific index.

Adjustment Date – The date that the interest rate changes for an ARM (Adjustable Rate Mortgage)

Application – A form, referred to as a 1003, used to apply for a mortgage and to provide information regarding a
prospective mortgagor and the proposed security.

Balloon Mortgage – A mortgage that has level monthly payments that will amortize it over a stated term, but provides for a lump sum payment, due at the end of the specified term.

Chain of Title – The history of all the documents that transfer title to a parcel of real property, starting with the earliest existing document and ending with the most recent.

Clear title – A title that is free of any liens, legal obligations or questions as to ownership of the property.

Covenant – A clause in a mortgage that obligates or restricts the borrower and, if violated, can end in foreclosure.

Related: Keep it Clean When Your Home is For Sale

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