The more real estate terms you understand, the more comfortable you will be in your home buying process. This is especially true for financial vocabulary related to real estate transactions.
To help familiarize you with some of these important concepts, here is a quick guide to financial real estate terms:
A fixed rate mortgage is one of the many types of mortgage loan available to prospective buyers. A fixed rate mortgage is a loan that maintains the same interest rate throughout the entire term of the loan.
This means the interest rate won’t fluctuate with market conditions, and won’t increase or decrease over time. A fixed rate mortgage is beneficial for homeowners who want to know exactly how much their monthly mortgage payment will be.
The down payment is the amount of money paid upfront to a mortgage lender to buy a home. The amount of the down payment can affect things like interest rates and the total amount of the mortgage loan.
For instance, a large down payment means you borrow less money, and therefore pay more upfront rather than more overtime in interest.
Fair market value refers to the variable value of a property based on market conditions. A real estate agent can help you find the fair market value of a home by conducting a comparative analysis of similar properties in the same area.
Some of the factors that can impact market value include curb appeal, square footage, energy efficiency and overall condition of the property.
These are just a few examples of real estate terms that can help you in a real estate transaction. By learning the language real estate agents use, the more confident you will feel on the search for your dream home.
One of the first things you will notice about Cindy Cassuto of Corcoran Legends Realty, a 24-year seasoned REALTOR®, is that she is soft-spoken, but don’t let that fool you. When Cindy is representing her clients, regardless of whether they are buying or selling a home, she is anything but a pushover. Her slogan is CINDY SELLS HOMES and she works extremely hard to be the best in the business. Her message to her clients is that if you’re successful, I’m successful…which is evidenced by the fact that she is truly at the top of her game.