December 2017 // Real Estate & Home Builders Guide // 3M
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.
Kirk Makin, Principal Broker ~ Russ Ruonavaara, Broker ~ Kent Sands, Broker
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.
Amortization - A plan for gradually repaying, in periodic
payments, money borrowed.
404 N. Main St. ~ P. O. Box 638
Joseph, Oregon 97846
541-432-3131 ~ 866-997-3131
Fax: 541-432-5780 Email: wcb@frontier.com
Intermediate-term Loan - A home loan of less than 30
years.
Balloon Mortgage - A mortgage that has a large amount of
the principle due at the time of maturity.
Life-of-loan Cap - A consumer protection on some adjust-
Bridge Loan - A loan that fi nances a mortgage at the end of
able loans. It limits the total upward adjustment that may occur
during the life of the loan. Also known as an overall cap.
Beautiful 40 AC w/ Elk Creek
Peaceful county living on 4+ AC
Buildable & very productive
flowing through the property.
irrigated AC w/ remodeled 3 BR, 3
irrigated 39+ AC w/ Wallowa
Own your own piece of heaven
BA log home. 2-car attached
Mountain & Lostine Canyon
out in the woods. Great recrea-
garage & 38 X 44 shop. Many
views. Priority water rights &
power is available. Located just a upgrades w/ remodeled kitchen & tional parcel with good elk & deer
bathrooms. Great Wallowa Moun- hunting as well as turkey, grouse
few minutes from downtown
& bear. #17207336 $79,000
tain views. #17191049 $449,000
Lostine. #17415302 $295,000
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 fi nancial institution authorized to
provide a variety of fi nancial services, including consumer and
business loans (generally short-term), checking services, cred-
it cards and savings accounts.
Condominium - The buyer owns title to a residential unit,
shares common areas with other unit owners and pays main-
tenance 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 divid-
ing the borrower's fi xed monthly obligations by the borrower's
monthly income.
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 Rate - 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 by a buyer to a
lender as security for money borrowed.
Mortgage Broker - An individual or company that obtains
mortgages for others by fi nding lending institutions, insurance
companies, or private lenders to lend money.
160 AC tillable irrigated farm w/ Premier cattle & hunting ranch on
This property is 160 AC w/ Crow
remodeled 3 BR, 1 BA house w/ 2,770 AC. Timber, creeks, springs
Creek frontage located in rural
Enterprise. Merchantable timber bamboo flooring, granite kitchen & 30 AC of irrigated meadows for
grazing. Bunk house, corral &
counter & maple cabinets. 16,300
& year around access to the
barn. Great elk, deer, bear &
parcel. LOP tags & good hunting. sq. ft. barn or shed. 5-wheel lines.
turkey hunting & trout fishing.
Very productive hay or grain
Great investment & recreational
#17591831 $2,300,000
parcel. #17154035 $1,149,000
property. #17014729 $239,000
Payment Cap - Limits the amount that a 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.
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
Prime Rate - The interest rate that banks charge to their
preferred customers. Changes in prime rate are used as index-
es in some adjustable rate mortgages, especially home equity
lines of credit.
payment of all liens or other charges on the property.
Principal - The basic loan amount, separate from interest,
Escrow - Funds left in trust with a third party, to be paid to a
insurance, and taxes.
designated recipient at a designated time.
Private Mortgage Insurance (PMI) - The insurance
Federal 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.
coverage offered by a private company that protects a lender
against loss on a default mortgage loan. Its use is usually lim-
ited to loans with high loan-to-value ratios. The borrower pays
the premiums.
Excellent 572 AC grazing land w/
75 AC in tillable dryland farm
ground. There are several ponds
for livestock water. Also has
great deer hunting & some beau-
tiful Wallowa Mountain & valley
views. #17338535 $379,000
Productive 132+ AC irrigated farm Gorgeous Grande Ronde River
w/ 4 BR, 2 BA home w/ new Hardy frontage property on 214+ AC in
Board siding. A shop, barn, 40 X Elgin, Oregon. Timbered areas &
grazing land. Great year access.
100 hay barn & corrals. Gravity
The river frontage is very private.
irrigation water. Great cattle &
Great hunting & fishing w/ this
hay operation. Big mountain
property. #17093052 $275,000
views. #17680471 $959,000
Title - Proof of ownership.
Federal Housing Administration (FHA) - A govern-
ment agency within the Department of Housing and Urban De-
velopment that administers many programs involving housing
loans made from private funds, including mortgage insurance
for lenders and rent or interest assistance for low-income ten-
ants and mortgagors.
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 eal E state
& H om ebu ilders G u ide
Terrific 997 AC cattle & hunting
ranch on the breaks of Grande
Ronde River. 2 BR, 2 BA ranch
house & outbuildings. 300 AC
tillable farm ground. Attached
500+ AC BLM permit extends to
the river. #17100579 $1,250,000
Make your dream home on the
shores of Wallowa Lake. Nice
level lot w/ a water certificate &
not far from the lake activities &
just minutes to Joseph, OR.
Possible owner terms & Broker
owned. #15491755 $249,000
Great Location! A 14-unit motel
w/ high visibility & lots of poten-
tial in Enterprise. Many new
upgrades including roof, flooring
& bathrooms. Many of the units
have kitchens & are rented
monthly. #17333996 $395,000