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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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