10 real estate terms you should know

1

Fees paid at the closing of a real estate transaction when a property is transferred from a seller to a buyer.

2

Typically expressed as a percentage and refers to the money a borrower puts down toward the cost of a home to secure a mortgage.

3

A special account set up by lenders to pay your property taxes and/or insurance in some states.

4

Expenses for services provided by a bank or third party during the application or closing process.

5

The rate used to determine the cost of borrowing money, usually stated as a percentage and as an annual rate.

6

An insurance policy that covers the bank in case you can't afford to pay the mortgage. Borrowers who put down less than the traditional 20% are often required to purchase PMI.

7

A portion of interest that you pay to a lender up front in exchange for a lower interest rate.

8

A levy by the government that is typically based on your home's improvement or building value and the land or site value.

9

A document that stipulates the terms of sale by the seller to the buyer.

10

An attorney who can review the PSA and other documents related to the home purchase.

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