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Wednesday, 7 May 2014

Jeff Adams Real Estate Seminar Ten Things You Need to a Property Sale

Jeff Adams Real Estate seminar the home buying season gets underway. If you are considering purchasing a home, it’s main to do some research. The language of real estate can be confusing, especially to newbies. Here are some terms you will meet that are helpful to know before you start negotiating on a deal.

1. The Mortgage

This may seem obvious, but an advance is a loan that is secured by actual property. Buyers who cannot afford to pay for the home outright with cash can go to an economic institution to get financing.

2. The Term

The Team this is the number of the years until a loan will be paid in full. It is often 17, 22 or 30 years.

3. The Down Payment

The down payment this refers to the amount of cash paid up front for the real estate transaction. Conventionally it has been optional that buyers have 20% of the buy price as a down payment but there are lots of options for buyers with less than that available.

4. The Credit Score

A number that reflect someone’s credit history and the probability that he or she will repay money borrowed. It is used to settle on the risk a possible borrower poses to the financial organization. It is one of the factors the financial institution uses to determine the interest rate of the mortgage. If you want to see where you stand, you can check 2 of your credit scores for free every month on Credit.

5. The Adjustable Rate

An adjustable-rate advance is a home loan where the interest rate fluctuates with the market. They often create out with a lower interest rate than our next term on the list and come with a cap on how high the rate may augment.

6. on Fixed Rate

A fixed-rate mortgage has a reliable interest rate for the life of the loan.

7. Points

Mortgage points are an upfront charge that is basically prepaid interest. Paid to the lender at closing, each point is 1% of the loan amount and generally reduces the monthly payment of a mortgage.

8. Amortize

Paying off a debt gradually, with regular payments.

9. FHA Mortgage

A loan insured by the Federal Housing Administration. These loans require a down payment of just 3.5% of the amount borrowed but require an initial premium of 1.75%, which can be financed into the loan. There’s also an annual premium that varies by loan amount, loan-to-value ratio and term of the loan. The borrower must meet certain requirements to qualify for this type of mortgage. 

10. Closing Costs

Closing costs are fees that are charged during the closing. Usually includes fees like loan origination, legal agent and title insurance and equals about 2% to 5% of the loan amount.