10 real estate terms you should know
Fees paid at the closing of a real estate transaction when a property is transferred from a seller to a buyer.
Typically expressed as a percentage and refers to the money a borrower puts down toward the cost of a home to secure a mortgage.
A special account set up by lenders to pay your property taxes and/or insurance in some states.
Expenses for services provided by a bank or third party during the application or closing process.
The rate used to determine the cost of borrowing money, usually stated as a percentage and as an annual rate.
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.
A portion of interest that you pay to a lender up front in exchange for a lower interest rate.
A levy by the government that is typically based on your home's improvement or building value and the land or site value.
Purchase and Sale Agreement (PSA)
A document that stipulates the terms of sale by the seller to the buyer.
Real estate lawyer
An attorney who can review the PSA and other documents related to the home purchase.