4M // Real Estate & Home Builders Guide // May 2016
Home Buyer's
I HAVE MORE PROPERTIES AVAILABLE
Glossary
Adjustable-rate
Mortgage (ARM) - A
mortgage for which the interest rate and the
payments change during the life of the loan.
Agreement of Sale - The contract in which the
seller agrees to sell and buyer agrees to buy, with
conditions and terms spelled out and signed by
both parities.
Amortization - A plan for gradually repaying, in
periodic payments, money borrowed.
Balloon Mortgage - A mortgage that has a
large amount of the principle due at the time of
maturity.
Bridge Loan - A loan that finances a mortgage
at the end of one loan and the start of a new
one.
Closing Costs - Expenses and fees that are
added to the price of the property, paid by the
buyer and the seller at the closing. The
Agreement of Sale states who pays which costs.
Commercial Bank - A financial institution
authorized to provide a variety of financial
services, including consumer and business loans
(generally short-term), checking services, credit
cards and savings accounts.
Condominium - The buyer owns title to a
residential unit, shares common areas with other
unit owners and pays maintenance fees to the
condominium association for property upkeep.
Conventional Loan - A loan not guaranteed
by the VA or insured by the FHA.
Co-op - In exchange for the right to occupy a
co-op unity, the buyer owns shares in the co-op
corporation (made up of co-op residents), rather
than owning real property.
Debt-to-income Ratio - A percentage arrived
at by dividing the borrower's fixed monthly
obligations by the borrower's monthly income.
Due-on-sale Clause - A mortgage stipulation
demanding payment of the entire loan balance
upon sale or other transfer of the real estate
securing the loan.
Equity - The ownership interest remaining in
property after payment of all liens or other
charges on the property.
Escrow - Funds left in trust with a third party, to
be paid to a designated recipient at a
designated time.
F ederal Home Loan Mortgage Corporation
(FHLMC or Freddie Mac) - A quasi-governmental
secondary market agency that purchases whole
mortgage loans. Freddie Mac sells interest in
pools of mortgage loans to obtain funds for
mortgage loan purchases.
Federal Housing Administration (FHA ) - A
government agency within the Department of
Housing
and
Urban
Development
that
administers many programs involving housing
loans made from private funds, including
mortgage insurance for lenders and rent or
interest assistance for low-income tenants and
mortgagors.
$85,000
OWNER CARRY
With buyer’s proven credit . 3
BD, 2 BA, open floor plan,
remodeled kitchen. Walk to
downtown & grocery store.
Federal National Mortgage Association
(FNMA or Fannie Mae) - A privately owned
and managed corporation that purchases
mortgage loans originated by other lenders.
Fannie Mae issues stocks and securities to
obtain funds for its purchases.
Fixed-Rate Mortgage - A loan that has one
set interest rate. Installment Debts - A buyer's
long-term debts; they usually extend for periods
longer than nine months.
Intermediate-term Loan - A home loan of
less than 30 years.
$159,900
Life-of-loan Cap - A consumer protection on
some adjustable loans. It limits the total upward
adjustment that may occur during the life of the
loan. Also known as an overall cap.
Loan-to-value
341 N. BROADWAY
Great downtown Burns
building. Long term tenant.
Over 6800 sq.ft. in the “hub”
of Burns. Shown by appt. only.
Ratio
- The relationship
between the amount of a home loan and the
total value of the property. Lenders may limit
their maximum loan to 80-95 percent of value.
Lock-in Rat e - A rate commitment made by
lenders when making a mortgage loan to
commit to or "lock in" that rate pending loan
approval. Lock-in commitment periods vary.
Market Value - The highest price the buyer is
willing to pay for a property and the lowest
price the seller will accept.
$72,000
Mortgage - A lien or claim on property given
by a buyer to a lender as security for money
borrowed.
3 BEDROOM,
2 BATH
Mortgage Broker - An individual or company
that obtains mortgages for others by finding
lending institutions, insurance companies, or
private lenders to lend money.
Payment Cap - Limits the amount that a
Detached double car garage
in Hines on a large lot. Metal
roof, frplc insert .
monthly payment on an ARM loan can increase
at the time of adjustment.
Points - One percent of the amount of the
mortgage loan.
Prepayment - Payment of a mortgage loan,
or portion of the loan, before the due date.
Prime Rate - The interest rate that banks
charge to their preferred customers. Changes in
prime rate are used as indexes in some
adjustable rate mortgages, especially home
equity lines of credit.
$59,000
Principal - The basic loan amount, separate
from interest, insurance, and taxes.
OWNER CARRY!
Private Mortgage Insurance (PMI) - The
insurance coverage offered by a private
company that protects a lender against loss on
a default mortgage loan. Its use is usually limited
to loans with high loan-to-value ratios. The
borrower pays the premiums.
Older home on
corner lot.
Title - Proof of ownership.
Title Search - A check of title records to assure
that the buyer is purchasing property with no
liens, encumbrances, or other claims which
might adversely affect the title's value or
marketability.
Veterans
Administration (VA) - A
government agency that helps veterans of the
armed forces obtain housing.
Denise Christensen
REAL ESTATE BROKER
Eastern Oregon
R e al E s tate
& H om ebu ilders G u ide
Doug Campbell
dcreburns.com
dcre_team@dcreburns.com
Professional Excellence Award
(541) 589-2743
615 S. Juntura - Burns, Oregon
Farm & Ranch Specialist
Cell: 541-589-2068
To better serve you please phone
ahead for appointment.