January 2018 // Real Estate & Home Builders Guide // 9M
FOR SUBSCRIPTIONS MAIL TO:
Glossary
Eastern Oregon
R eal E state
& H om ebu ilders G u ide
3 ZONES TO SERVE YOU!
Adjustable-rate Mortgage (ARM) - A mortgage for
which the interest rate and the payments change during the
life of the loan.
E
W
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.
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.
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.
one loan and the start of a new one.
M
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,
E = EAST: Umatilla, Morrow, Gilliam & Wheeler Counties
M = MOUNTAIN: Union, Wallowa, Baker, Grant, Malheur & Harney Counties
W= WEST: Umatilla, Morrow, Gilliam & Wheeler Counties
211 SE Byers • Pendleton, Oregon 97801
541-278-2670 • 1-800-987-7511
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.
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Debt-to-income Ratio - A percentage arrived at by divid-
ing the borrower's fi xed monthly obligations by the borrower's
monthly income.
E M W (Circle one)
I am enclosing $16 for my subscription for 12 issues.
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.
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
Name
payment of the entire loan balance upon sale or other transfer
of the real estate securing the loan.
Address
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.
City, State, Zip
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.
Phone #
Private Mortgage Insurance (PMI) - The insurance
Federal Home Loan Mortgage Corporation (FHLMC
MC/VISA
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.
exp. date
For Further information on
Eastern Oregon
contact these Chambers of Commerce
Baker City
Boardman
Enterprise
Hermiston
Heppner
John Day
La Grande
Milton-Freewater
Pendleton
Umatilla
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.
490 Campbell
101 Olson Rd.
107 S.W. First
415 S. Hwy 395
289 N. Main
281 West Main
102 Elm
505 Ward
501 S. Main
1530 Sixth
541-523-5855
541-481-3014
541-426-4622
541-567-6151
541-676-5536
541-575-0547
541-963-8588
541-938-5563
541-276-7411
541-922-4825
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.
Title - Proof of ownership.
Look for your next home in
one place, The Eastern
Oregon Real Estate & Home
Builders Guide!
UMATILLA, MORROW
, GILLIAM
& WHEELER COUNTIE
S
FREE
1036
LISTINGS
156
AGENTS
VOL. 32 NO. 10
OCTOBER 2015
SECTION ONE
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.
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