Since an appraisal is based primarily on comparable sales, and the most recent sale is the one on the property in question, the appraisal usually comes out at the purchase price.Īn appraiser is an individual qualified by education, training, and experience to estimate the value of real property and personal property. The form used to apply for a mortgage loan, containing information about a borrower’s income, savings, assets, debts, and more.Īn appraisal is a written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.Īppraised value is an opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property. Because you are using the same payment on a smaller amount, the APR is always higher than the actual not rate on your loan. You will come up with a number close to the APR. It works sort of like this, but not exactly, so only use this as a guideline: deduct the closing costs from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead of your actual loan amount. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It also shows the gradual decrease of the loan balance until it reaches zero. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.Īn amortization schedule is a table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. A contract in which a seller agrees to sell and a buyer agrees to buy, under specific terms spelled out in writing and signed by both parties. Known by various names, such as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction. Subsidized secondary financing or other financial assistance provided under an established, documented secondary financing or financial assistance program that has formal procedures in place to provide applicant qualification, loan processing, and loan program administration on an ongoing basis. The Seller typically owns less than a majority of the voting stock or the Seller and the entity are subsidiaries of a third party. On an adjustable rate mortgage, the time between changes in the interest rate and/or monthly payment, usually one, three or five years.Īn entity related to a Seller that is subject to common operating control and that is operated as part of the same system or enterprise. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender.Īccessed value is the valuation placed on property by a public tax assessor for purposes of taxation.Īn adjustable rate mortgage is a mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. If there are any title defects they must be cleared before a buyer can purchase clear, marketable, and insurable title.Ī acceleration clause is a clause in which your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. Loans against 401K plans are an acceptable source of down payment for most types of loans.Ī summary of the public records relating to the title to a particular piece of land. Some administrators of 401(k)/403(b) plans allow for loans against the monies you have accumulated in these plans. 403(b) plans are provided by employers that are not for profit organizations. 401(k) plans are provided by employers that are private corporations. Charleston Real Estate Terms and DefinitionsĪn employer-sponsored investment plan that allows individuals to set aside tax-deferred income for retirement or emergency purposes.
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