16
Nov
2011

Real Estate Financing Terminology

Written by Shannon Patterson Posted in Financial Articles

Helpful Real Estate Terms

Your McKinney Real estate terms...

Welcome to the 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.

 Helpful real estate Financing terms...

Welcome to the 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.

Terms:

Interest Rate

The monthly effective rate paid (or received if you are a creditor) on borrowed money. Expressed as a percentage of the sum borrowed.

MLS- IDX

IDX, or broker reciprocity, is a listing sharing arrangement between brokers within a Mulitple Listing Service.

Market Value

An asset's market value is the price it would fetch in the market, if it were sold in the current marketplace.

Title Insurance

A type of insurance which guarantees the ownership and quality of title to land.

Appraisal

An educated estimate of the value of a property on a certain date given by a person, usually after an inspection of the property.

As is

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.

Bankruptcy

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.

Bid

To offer (a price) whether for payment or acceptance.

Property Tax

A tax levied on real or personal property

Interest Rate

The percentage usually on an annual basis that is paid for the use of money borrowed from another

Home Loan

a) Money lent at interest; b) something lent usually for the borrower's temporary use.

Credit Risk

An estimate of the amount of credit that can be extended to a company or person without undue risk.

Credit Union

A cooperative organization that makes loans to its members at low interest rates.

Prime Rate

The lowest rate of interest on bank loans at a given time and place, offered to preferred borrowers.

ARM

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.

Mortgage

A temporary, conditional pledge of property to a creditor as security for performance of an obligation or repayment of a debt.

About the Author

Shannon Patterson

Shannon Pattererson is a Buyers Agent with the Jane Clark Group. She is in the Keller Williams McKinney Office and specializes in McKinney real estate. Shannon is extremely organized and experienced in nuances of finding just the right home for her clients

mckinney_realtor_blue ribbon1 Voted Best Realtor  "D" Magazine 2006-2012
mckinney_realtor_blueribbon2Top Producer   Keller Williams   North Collin County
mckinney_realtor_blue ribbon3 20+ Years raising a family in Collin County
mckinney_realtor_blueribbon414 years experience  Full-Time Realtor  KW Agent Leadership Council

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