Glossary

Adjustable Rate Mortgage: A loan for homeowners that offers a fixed monthly rate for a set introductory period and then the rates are adjusted according to the market interest rates at the time.

Appraisal: The estimated cost of your property as deemed by a professional estimator schooled in the process of rating property for value. An appraisal establishes the price at which you sell your home.

Broker: Someone who buys and sells real estate through their own business.

Buy Down: The process of lowering your interest rate for a varied amount of time whether it is permanent or just for a limited time.

Closing: The final process of selling and buying a home when the buyer and seller exchange the ownership responsibility of the property.

Closing Costs: The cost the seller pays to the real estate agent and other persons involved in the finalization of the sale of the home and property.

Credit Report: A report of any credit activity that you have that is reviewed to establish the amount of credit you can obtain.

Credit Score: Based on the credit report, the score is determined to categorize the state of your credit. The score you receive based on your credit report.

Equity: The difference between the cost of your house and how much you still owe. The equity accrues with the length of ownership.

Home Equity Line of Credit: Credit that you can borrow based on the equity you have earned in your home.

Loan Term: The length of time that a borrower must pay toward the balance of a loan.

Note: A paper indicating from the borrower of the loan that they recognize the debt and states their responsibility to pay back the loan.