Know the Real Estate LingoMay 6, 2014
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.