Real estate Glossary
Your real estate terms
Welcome to the Melissa real estate and homes for sale real estate and mortgage glossary for McKinney, Plano, Frisco, Allen, Melissa, Anna and Collin County, TX areas. Understanding real estate terminology can be of great assistance in buying or selling a home, commercial property, or investment property. In order to help you understand words commonly used in a real estate transaction, I have prepared a list of real estate terms you should become familiar with. Thanks again and be sure to contact me for any of your McKinney real estate needs or real estate needs for Plano, Frisco, Allen, Melissa, Anna here in Collin County, TX.
The monthly effective rate paid (or received if you are a creditor) on borrowed money. Expressed as a percentage of the sum borrowed.
IDX, or broker reciprocity, is a listing sharing arrangement between brokers within a Mulitple Listing Service.
An asset's market value is the price it would fetch in the market, if it were sold in the current marketplace.
A type of insurance which guarantees the ownership and quality of title to land.
An educated estimate of the value of a property on a certain date given by a person, usually after an inspection of the property.
Implied in most Agreements of Purchase and Sale, suggests the buyer is accepting the property in it present state and relinquishes and responsibility from the buyer.
a) A person who has done any of the acts that by law entitle his creditors to have his estate administered for their benefit; b) a person judicially declared subject to having his estate administered under the bankrupt laws for the benefit of his creditors; c) a person who becomes insolvent.
To offer (a price) whether for payment or acceptance.
A tax levied on real or personal property
The percentage usually on an annual basis that is paid for the use of money borrowed from another
a) Money lent at interest; b) something lent usually for the borrower's temporary use.
An estimate of the amount of credit that can be extended to a company or person without undue risk.
A cooperative organization that makes loans to its members at low interest rates.
The lowest rate of interest on bank loans at a given time and place, offered to preferred borrowers.
A mortgage whose interest rate is raised or lowered at periodic intervals according to the prevailing interest rates in the market.
Home Equity Loan
A loan or credit line that is secured by the equity the borrower has in a home.
A temporary, conditional pledge of property to a creditor as security for performance of an obligation or repayment of a debt.
his section features mortgage program information for home buyers interested in real estate in McKinney, Plano, Frisco, Allen, Melissa, Anna and surrounding Collin County, TX areas.
In order to help you with your next home purchase, I have put together a simple review of some of the major mortgage programs.
Variable or Adjustable-Rate Real Estate Mortgage
With an adjustable rate mortgage, the rate of the loan can change throughout the term of the loan. Many ARMs have a short fixed period and then become truly adjustable. The rate of the loan is based on adding points to a fixed base.
Fixed-Rate Real Estate Mortgage
With this type of loan, the interest rate remains consistent throughout the term of the loan.
Balloon Real Estate Loan
A balloon loan is a real estate loan where there is a lump sum due at the end of the loan. This normally encourages an individual to refinance prior to the end of the term of the loan.
Jumbo Real Estate Loans
A jumbo loan is any residential or commercial loan exceeding the guidelines of Fannie Mae and Freddie Mac.
FHA Real Estate Loans
An FHA loan is a loan in the United States that is insured by the Federal Housing Administration.
VA Real Estate Loans
A VA loan is a loan in the United States guaranteed by the Veterans Administration. The loan may be issued by qualified lenders. The VA was designed to offer long-term financing to American Veterans or to their surviving spouses.