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About East Oregonian : E.O. (Pendleton, OR) 1888-current | View Entire Issue (June 17, 2016)
June 2016 // Real Estate & Home Builders Guide // 11M Home Buyer's 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. 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. 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 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. Mortgage - A lien or claim on property given Conventional Loan - A loan not guaranteed by the VA or insured by the FHA. Mortgage Broker - An individual or company 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. By Ilyce Glink and Samuel J. Tamkin Tribune Content Agency Q 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. Co-op - In exchange for the right to occupy a Updating will is important for estate by a buyer to a lender as security for money borrowed. : I always read your arti- cles and am looking at one regarding contested title transfers. The “Medical Certif- icate of Capacity” estab- lishes that an individual had full capacity as of a certain date. It prevents any attempt to claim that you were inca- pacitated at some unspeciied time in the past, and therefore at risk of the court attempting to void your pre-need docu- ments. This form can be witnessed and updated yearly. : Thank you for your comment. As your estate attorney told you, the docu- ment couldn’t hurt and it might help in certain circum- stances. The big issue is what happens on the death of a loved one that left a will but the disposition of assets in the will doesn’t please everyone. A If you have children or family members that are constantly squabbling, it won’t matter what was signed and when it was signed. These family members will still squabble, argue and cause trouble. There are different family situations that can cause problems. The irst is when a parent quitclaims a home to a child before the parent dies. In this situation, the other children are left out and don’t get any interest in the home. Or, a parent decides in his or her will to leave the home to only one child and excludes the others. Again, one child is favored at the expense of others and family members can argue for an extended period why the one was picked over the others. Yes, the document you cite would show that the parent was competent at a certain point of time. But the child can still exercise undue inlu- ence on the parent. There may be other factors that could inluence an otherwise sane parent to make a deci- sion that he or she may other- wise not take. We think the most important element is the element of trust. If the parent has a plan and wants to give his or her home to one child either during his or her life or by will, the parent should have a document in place to explain the reasoning for the disposition of the home. In the will, the parent can explain why he or she decided that the home should go to a certain person and why it shouldn’t go to the others. Even then, the children may still squabble, but at least the parent has put something down on paper to explain his or her reasoning and the judge can use that as a basis for his or her decision. that obtains mortgages for others by finding lending institutions, insurance companies, or private lenders to lend money. ING Payment Cap - Limits the amount that a NEW 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. Principal - The basic loan amount, separate from interest, insurance, and taxes. LIST BUSINESS: 541-523-2800 CELL: 541-518-2800 3480 Place • BAKER CITY, OR 97814 “16th Street - between Auburn and Place” Licensed in Oregon SPACIOUS THREE BEDROOM two bath1995 mfg. home on corner lot with oversized attached garage/shop. Enclosed patio. Mtn. view. Irrigation well with pump, utility shed. Kitchen appliances included. $159,900 BUILDING LOT: Level corner lot in Heather Glen Subdivision. Ready for development. Phone and power are available at property line. Protective CC&Rs are in place. Mountain and valley views. $78,900 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. OFFICE 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. Eastern Oregon R e al E s tate & H om ebu ilders G u ide #3116A SPECTACULAR MIDDLE FORK OF JOHN DAY RIVER LOCATION! 660 +/- timbered rolling acs w/pastoral views. 4.8 mi of river frontage & in Northside hunting unit w/wildlife & game birds. LOP Tags. Owner may consider selling tax lots separate. $495,000. RMLS#15407891 Title - Proof of ownership. 160 E. MAIN • JOHN DAY, OR 97845 541-575-2121 / 888-575-2121 #3092C OWN YOUR OWN FIGARO’S PIZZA. This #3162R NEW PRICE!!! NICE UPDATES! 1148+/- SQ FT 3BD/1BA. Lots of updates. All kitchen appliances included with sale. Extra large lot w/large garden area, fruit trees, 12X20 shed w/heat, New paint, roof, windows. 303 NW 3rd AVE John Day NOW $132,500! RMLS#16286638 established business in highly-visible location offers in-store dining, take-out & delivery service. Products incl pizza, lasagna, calzone, wings & much more. #3173R GREAT FAMILY HOME IN A GOOD LOCATION Jerry Franklin, GRI (ABR)/SRES Nice 3BD/2BA 1296 +/- SF 2009 Karsten MH above Figaro’s is a 30-yr old established national chain. Principal Broker/Owner, Humbolt Elementary School w/great views of Canyon Mtn. Completely remodeled building. 825 S. Canyon, JD. 541-820-3721 Kitchen island, tasteful decor, new woodstove in 2010. Cov $275,000 RMLS#15234896 Wendy Hull, GRI porch, cyclone fenced yard, hobby shop w/concrete floor, Principal Broker, 541-620-4239 #3167A 393 Brent Ln, CC. $130,000 RMLS#16255950 PRIVATE AND SECLUDED 5.84+/- acres bordering Michal Madden Forest Service in the Pines, ready to build or use as #3179RR HOME OVERLOOKING BEAUTIFUL JOHN DAY GOLF Broker, 541-620-4408 a recreational retreat. Power/well already in/DEQ COURSE. Sale incl golf cart! Drive down driveway & onto Kathy Endicott course. Nice private 1296 +/- SF log-sided & upgraded approved for septic/paved road to property/year Principal Broker, 541-620-2960 1984 Silvercrest DW 3BD/2BA w/cov deck, sprinklered round accessible/nice shop/with attached covered Traci Frazier yd, storage bldg & tool shed. On very low maint 2.89 +/- parking. Laycock Creek Rd, Mount Vernon $149,000 Broker, 541-620-0925 acs w/city water & septic. 59489 Vista Ln, JD. $169,000 RMLS#16341626 RMLS#16009193 Shanna Langley Broker, 541-791-1180 See our listings at: www.easternoregonrealty.net • www.eastoregonrealestate.com • www.farmseller.com • www.rmls.com
