Real Estate Glossary
When it comes to real estate, there are a lot of terms thrown around that you may not be familiar with — especially if you are a first-time home buyer. The Dottie & Kate Team is dedicated to making sure you have the best home-buying experience possible. That includes making sure you know exactly what we're talking about, and what your lender is talking about.
Below are some of the most common terms in real estate. If you are still unsure about what something means, don't hesitate to give us a call!
Below are some of the most common terms in real estate. If you are still unsure about what something means, don't hesitate to give us a call!
Adjustable-rate Mortgage (ARM)
As the name suggests, adjustable-rate mortgages have interest rates that can increase or decrease, depending on the market. Click here to learn more.
Annual Percentage Rate (APR)
The annual percentage rate is how much total interest you’ll pay on the mortgage, divided by the years you’ll have the mortgage. Click here to learn more.
Balloon Mortgage
Balloon mortgages are typically short-term loans with a low interest rate, but come with a large final payment. Click here to learn more about these loans.
Real Estate Broker
There are three general terms used for people that buy and sell real estate: agents, brokers and Realtors. Click here to learn how they are different.
Chain of Title
In real estate, the chain of title is the sequence of owners of a property. It is important that there are no gaps in this report. Click here to learn more.
Cosigner/Co-borrower
A cosigner/co-borrower is someone who agrees to be on the mortgage with the primary borrower, taking on legal responsibility. Click here to learn more.
Deed-in-Lieu
A deed-in-lieu of a foreclosure is a solution for homeowners that transfers ownership of the property back to the lender. Click here to learn more.
Delinquency
In general, a delinquency is any time a borrower fails to make payments on a loan as stated in the original contract. Click here to learn more.
Due Diligence
Due diligence, or doing your homework, is essential in the real estate market. Click here to learn more about cautions you need to take.
Earnest Money
Earnest money is a type of deposit that tells a property owner you are serious about making a purchase. Click here to learn more about this payment.
Equal Credit Opportunity Act (ECOA)
The Equal Credit Opportunity Act (ECOA) forbids lenders from discriminating based on certain factors. Click here to learn more about this law.
Escrow
In real estate, escrow most often refers to money paid by the borrower set aside by the lender to pay for certain fees. Click here to learn more.
Fair Credit Reporting Act
You have a right to certain financial information under the Fair Credit Reporting Act (FCRA). Click here to learn more about your rights.
Fannie Mae (FNMA)
A Fannie Mae-backed loan may help you be able to purchase your home. Click here for more information about this type of available financing.
Fixed-Rate Mortgage
A fixed-rate mortgage has an established interest rate that does not change over the life of the loan. Click here to learn more about your choices.
Government National Mortgage Association (Ginnie Mae)
Ginnie Mae may be the right mortgage product for you. Click here to discover more about this organization and how it may differ from others.
Home Equity Conversion Mortgage (HECM)
A home equity conversion mortgage is more commonly known as a reverse mortgage. Click here for more information about this type of loan.
Homeowner's Insurance
A homeowners insurance policy is required when you purchase a new home. Click here to learn more about this protection for your property.
Judicial Foreclosure
A judicial foreclosure is the process of removing a homeowner from their property after they fail to make several payments. Click here to learn more.
Jumbo Loan
A jumbo loan goes beyond the limits of a conventional loan and can help you purchase a luxury home. Click here for more information about limits.
Liability Insurance
Liability insurance will help protect you in the event someone is injured in your home or on your property. Click here to learn more.
Lien
A property lien is placed by a creditor when someone owes money as a guarantee that they will receive payment. Click here to learn more.
Lock-In
A lock-in is also known as a rate lock and provides a purchaser with a guaranteed rate for a specific period of time. Click here to learn more.
Mortgage
A mortgage is the loan you take when you purchase your home, using your property as collateral. Click here for more information about your options.
Negative Amortization
Negative amortization occurs when interest payments are not made in full. Click here to discover more about your available mortgage options.
PITI
PITI refers to the principal, interest, tax and insurance payments tied into your monthly mortgage payment. Click here for more information.
Pre-Approval
Obtaining a pre-approval for a mortgage is a process that many home buyers undertake. Click here to learn more about pre-approvals.
Real Estate Settlement Procedures Act (RESPA)
RESPA is an Act that applies to the information provided to potential home buyers. Click here for more information on the importance of this Act.
Subordinate Financing
Subordinate financing is a second mortgage that typically carries a higher interest rate. Click here for more information on this option.
Sweat Equity
Sweat equity is comprised of projects that require a small investment but a good deal of work. Click here to discover more about these home improvements.
Title Search
A title search provides a chain of ownership to a property. Click here to discover more about this important piece of the home buying process.
Two-Step Mortgage
A two-step mortgage is one in which the interest rate will be adjusted after a period of time. Click here to discover more about this type of home loan.
VA Mortgage
A VA loan is backed by the government but obtained through a private lender. Click here for more information on this benefit offered to military members.
As the name suggests, adjustable-rate mortgages have interest rates that can increase or decrease, depending on the market. Click here to learn more.
Annual Percentage Rate (APR)
The annual percentage rate is how much total interest you’ll pay on the mortgage, divided by the years you’ll have the mortgage. Click here to learn more.
Balloon Mortgage
Balloon mortgages are typically short-term loans with a low interest rate, but come with a large final payment. Click here to learn more about these loans.
Real Estate Broker
There are three general terms used for people that buy and sell real estate: agents, brokers and Realtors. Click here to learn how they are different.
Chain of Title
In real estate, the chain of title is the sequence of owners of a property. It is important that there are no gaps in this report. Click here to learn more.
Cosigner/Co-borrower
A cosigner/co-borrower is someone who agrees to be on the mortgage with the primary borrower, taking on legal responsibility. Click here to learn more.
Deed-in-Lieu
A deed-in-lieu of a foreclosure is a solution for homeowners that transfers ownership of the property back to the lender. Click here to learn more.
Delinquency
In general, a delinquency is any time a borrower fails to make payments on a loan as stated in the original contract. Click here to learn more.
Due Diligence
Due diligence, or doing your homework, is essential in the real estate market. Click here to learn more about cautions you need to take.
Earnest Money
Earnest money is a type of deposit that tells a property owner you are serious about making a purchase. Click here to learn more about this payment.
Equal Credit Opportunity Act (ECOA)
The Equal Credit Opportunity Act (ECOA) forbids lenders from discriminating based on certain factors. Click here to learn more about this law.
Escrow
In real estate, escrow most often refers to money paid by the borrower set aside by the lender to pay for certain fees. Click here to learn more.
Fair Credit Reporting Act
You have a right to certain financial information under the Fair Credit Reporting Act (FCRA). Click here to learn more about your rights.
Fannie Mae (FNMA)
A Fannie Mae-backed loan may help you be able to purchase your home. Click here for more information about this type of available financing.
Fixed-Rate Mortgage
A fixed-rate mortgage has an established interest rate that does not change over the life of the loan. Click here to learn more about your choices.
Government National Mortgage Association (Ginnie Mae)
Ginnie Mae may be the right mortgage product for you. Click here to discover more about this organization and how it may differ from others.
Home Equity Conversion Mortgage (HECM)
A home equity conversion mortgage is more commonly known as a reverse mortgage. Click here for more information about this type of loan.
Homeowner's Insurance
A homeowners insurance policy is required when you purchase a new home. Click here to learn more about this protection for your property.
Judicial Foreclosure
A judicial foreclosure is the process of removing a homeowner from their property after they fail to make several payments. Click here to learn more.
Jumbo Loan
A jumbo loan goes beyond the limits of a conventional loan and can help you purchase a luxury home. Click here for more information about limits.
Liability Insurance
Liability insurance will help protect you in the event someone is injured in your home or on your property. Click here to learn more.
Lien
A property lien is placed by a creditor when someone owes money as a guarantee that they will receive payment. Click here to learn more.
Lock-In
A lock-in is also known as a rate lock and provides a purchaser with a guaranteed rate for a specific period of time. Click here to learn more.
Mortgage
A mortgage is the loan you take when you purchase your home, using your property as collateral. Click here for more information about your options.
Negative Amortization
Negative amortization occurs when interest payments are not made in full. Click here to discover more about your available mortgage options.
PITI
PITI refers to the principal, interest, tax and insurance payments tied into your monthly mortgage payment. Click here for more information.
Pre-Approval
Obtaining a pre-approval for a mortgage is a process that many home buyers undertake. Click here to learn more about pre-approvals.
Real Estate Settlement Procedures Act (RESPA)
RESPA is an Act that applies to the information provided to potential home buyers. Click here for more information on the importance of this Act.
Subordinate Financing
Subordinate financing is a second mortgage that typically carries a higher interest rate. Click here for more information on this option.
Sweat Equity
Sweat equity is comprised of projects that require a small investment but a good deal of work. Click here to discover more about these home improvements.
Title Search
A title search provides a chain of ownership to a property. Click here to discover more about this important piece of the home buying process.
Two-Step Mortgage
A two-step mortgage is one in which the interest rate will be adjusted after a period of time. Click here to discover more about this type of home loan.
VA Mortgage
A VA loan is backed by the government but obtained through a private lender. Click here for more information on this benefit offered to military members.
