ABR, CRS, GRI
Associate Vice President
Relocation Specialist
Phone: 262.797.7600 x 1322
Cell: 414.640.1897
Glossary | |
| Terms that are on use on this site. | |
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| Term | Definition | |
| Abstract (of title) | A written summary of the title history of a particular piece of real estate. | |
| Acceleration Clause | A provision of a mortgage or note which provides that the entire outstanding balance will become due and payable in the event of default. | |
| Amortization | Repayment of loan by installment payments. As the payments are made, the debt is reduced so that at the end of fixed period or term, no money will be owed. | |
| Application Fee | That part of the closing costs pre-paid to the lender at time of application to cover initial expenses. | |
| Appraisal | A report made by a qualified person as to the value of a property as of a given date. | |
| APR (Annual Percentage Rate) | The annual percentage rate refers to the total cost of the loan, expressed as a yearly rate. | |
| ARM (Adjustable Rate Mortgage) | A mortgage in which the interest rate is adjusted periodically, based on the movement of a financial index. | |
| Assessed Value | The value placed on a piece of real estate by the taxing authority for the purpose of taxation. Also called an assessment. | |
| Assumption of Mortgage | The purchaser takes over mortgage payments for the balance of the loan, assuming primary liability. Unless specifically released by the lender, the seller remains secondarily liable. | |
| Balloon Mortgage | A mortgage with periodic payments that do not fully amortize the loan. The outstanding balance of the mortgage is due in a lump sum at the end of the term. | |
| Bridge Loan | A short-term loan secured by the equity in an as-yet-unsold house, with the funds to be used for a down payment and/or closing costs on a new house. There is no payment of principal until the house is sold or the end of the loan term, whichever comes first. Interest payments may or may not be deferred until the house is sold. | |
| Broker | The person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them. | |
| Buydown | Money advanced by an individual (e.g. builder, seller, buyer, lender, developer) to lower monthly mortgage payments for a few years or the whole term. | |
| Cap (interest rate) | The maximum interest rate increase allowable on an adjustable rate mortgage. Does not result in negative amortization. See Negative amortization. | |
| Cap (payment rate) | The maximum payment amount increase allowable on an adjustable rate mortgage. May result in negative amortization. See Negative amortization. | |
| Certificate Of Title | A statement that shows ownership of property, stating that the seller has clear legal title. | |
| Closing | The concluding day of the real estate transaction, when title and deed pass from seller to buyer, the buyer signs the mortgage and pays the purchase price and closing costs. | |
| Closing Costs | Expenses (over and above the price of the property) incurred by buyers and sellers in transferring ownership of a property. Also called 'settlement costs.' | |
| Closing Statement | A financial disclosure giving an account of all funds received and expected at closing, including the escrow deposit for taxes, hazard insurance and mortgage insurance for the escrow account. | |
| Commission | An agent's or broker's fee for bringing the principals together and helping to negotiate a real estate transaction, often a percentage of the sales price or flat fee. | |