Important Real Estate Terms
Lingows Admin • February 8, 2021
Important Real Estate Terms
As you are buying a home, you’re bound to come across a few uncommon terms that keep coming up when dealing with real estate financing. I’ll go over some of those terms that may come up when dealing with real estate financing.
- Interest: A charge paid for borrowing money.
- APR (Annual Percentage Rate): The cost of credit expressed as an annual rate. It must be calculated by using a formula set by federal law and disclosed to the borrower to aid in comparing different credit plans.
- Points: This is a form of prepaid interest where one point is worth 1% of the loan. A borrower might be offered points by the lender to discount the loan interest.
- Clauses: Clauses are known to include in mortgages these days which create some additional rules for loans.
- Mortgage: The term of agreement with your financial institution
CLICK HERE for the full list of our mortgage glossary of terms.
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After we determine that a refinance will be beneficial for you, we start the application. Much like your original mortgage application, this one collects general information and asks for documentation of your income and assets.
Whether you still thinking of getting into the rental property business or you’re just closing on your 50th investment property, you still have several decisions to make relating to how you will manage all your investments. This is usually among the biggest, toughest decisions a landlord is faced with whether they should hire a property management company. Most landlords are seen managing their investment properties all by themselves or by the help of a single employee, known as a resident manager.
A very important and required step in the reverse mortgage process is independent counseling. Prior to application, all reverse mortgage applicants must receive independent counseling. This is a step that is in place for your protection and is required by law.
Do you remember the story: The Little Boy Who Cried Wolf? I have to admit – sometimes I feel as if some of my clients view me as the little boy from the story when I’m repeatedly and passionately asking them to prepare early for the mortgage process ahead. I’m sending this email to explain how this preparation can make a tremendous difference. Please read on.
Realistically speaking – how long do you plan on living in the home you’re hoping to purchase? More times than not, my clients tell me they’re planning on living in their home forever. However, most real estate professionals I’ve spoken to on this topic suggest that the typical family’s home needs change approximately every five to seven years. This statistic might surprise you – it certainly surprised me!
Realistically speaking – how long do you plan on living in the home you’re hoping to purchase? More times than not, my clients tell me they’re planning on living in their home forever. However, most real estate professionals I’ve spoken to on this topic suggest that the typical family’s home needs change approximately every five to seven years. This statistic might surprise you – it certainly surprised me!
In the reverse mortgage process it is very common for questions to arise that are similar in nature from one customer to another. Below I have listed some of the frequently asked questions that we receive and some factual responses for your information.
Have you taken advantage of the great rates available on Temporary High Balance or Agency Jumbo loans? If not, you may need to do so sooner rather than later. With these loans, Fannie Mae and Freddie Mac are authorized to purchase mortgages that are up to 125% of certain high-cost areas’ median home values, not to exceed a preset limit. Implemented as part of the 2008 stimulus package, these loan offerings were intended as a temporary measure. They have already been extended once, and limits have been reduced.
Most mortgage loan programs require a property to be in sound condition with no structural defects or required repairs. Not the 203k. It’s made for homes needing anything from light spruce up to major repairs, improvements or new additions. Combine Purchase and Improvements The 203k loan covers your purchase price and the cost of improvements. The proposed work must be supported by a “value upon completion” appraisal. You can save by financing renovation costs into the original mortgage rather than racking up credit card bills or dipping into reserve savings later.
Home Equity Line of Credit
Once upon a time, HELOCs were promoted as a great way to shop for life’s luxuries. New cars, vacations, furniture—you name it, and a HELOC could likely help you buy it.
