Mortgage Terms For Non Real Estate Agent

  • 0

Mortgage Terms For Non Real Estate Agent

Are you considering the purchase of a new home, If you are then you could not have picked a better time. Since the housing market is relatively sluggish, this means that you will find low home prices and low interest rates. And there are much more homes to choose from. These extra homes make for a buyers market because the basic laws of supply and demand are in effect. If you plan to purchase soon then it will be good to have a basic understanding of the terminology that you will come across in the real estate market.

Some common mortgage terms include the following:length or term of loan, interest rates, variable rate loans, closing costs,document taxes,origination fees, acceleration, home equity,conventional financing, amortization, FHA loans,down payment,points, private mortgage insurance (PMI) and fixed rate loans.

The interest rate is how much money the lender will charge in order for you to borrow on the loan. Generally this is expressed in terms of percent. Therefore the lower an interest rate, the less the loan will cost. The length of the loan is referred to as the term of the loan. This is the length of time that you will have to make mortgage payments. In the past, a mortgage could last for twenty years. However, nowadays thirty years is much more common.

Closing costs are the fees that come with the actual buying and selling of the home. Closing cost fees include: title insurance fees, realtors fees, cost of necessary repair costs to the home,document stamp tax,points and various other costs. The opposite of fixed loan rates is the variable rate loan. A variable rate loan will allow for the interest rate to fluctuate with the prime interest rate. With a fixed rate loan an interest rate will remain the same no matter the length of the loan.

Loan discount points are simply called “points" and they are the fees that are charged to the buyer from the lending bank. They are considered prepaid interest and can add some additional to the closing costs. A point is equal to one percentage of the loan amount. If you are borrowing $200,000 and are assessed one point by the lender, then you would have top pay $2000 of prepaid interest at the time of closing.

PMI or Private Mortgage Insurance is insurance that allows a buyer to make a smaller down payment on the house that they want to buy. If you plan to put less than 20% down on a home, most lenders will require you to purchase private mortgage insurance. The down payment is the amount of money that you will pay out of pocket toward the purchase price of your home. Your down payment will include the selling price of the home minus the amount of the mortgage.

Most lenders will either require a 20% down payment or you will have to carry private mortgage insurance.


Leave a Reply

Jessica Post
Jessica Post
07:52 18 May 17
Wayne is very thorough and accommodated all my annoying questions like a champion! He was also able to complete the inspection quickly and provided his report in a timely manner. Highly recommend.
Kai Ikeuchi
Kai Ikeuchi
11:24 23 Mar 17
Wayne was very professional and assisted us quickly. We required an inspection with a turnover of 2 days. He was able to provide us with the relevant information so that my fiancé and I could make a better decision when bidding for our future house. Thanks to Wayne and Inner West Property Inspection, we were able to be confident with our decisions.
Genevieve McCabe
Genevieve McCabe
15:14 14 Feb 17
I just had my home inspected by Inner West Property Inspections this week and the peace of mind is worth every cent. I am buying an older inner west home and Wayne was skilled, patient and thorough. I highly recommend this service.
Karen L
Karen L
08:45 13 Feb 17
Wayne was punctual, polite, and neat and tidy. Very professional. He answered our questions and provided a great inspection report that we passed on to our solicitor. Would highly recommend him to anyone looking to have their future home inspected. Karen L, Ashfield
Gary Williams
Gary Williams
07:43 15 Feb 17
Inner West Property Inspections inspected a house I was looking to purchase in Marrickville. Wayne showed up on short notice as the auction was in 2 days. He provided a great, detailed report and called the next day to clarify something. Top level service and knowledge! Gary Williams, Marrickville
Andrew Gee
Andrew Gee
20:42 24 May 17
Wayne provides an excellent service. He explains any issues in terms that the clients can easily understand and offers real world advice on how to go about any repairs or rectification works required. The ultimate professional in his field, and a really nice bloke too!
Nasir Shah
Nasir Shah
11:46 21 May 17
Wayne was fantastic. Not only did he perform a very thorough inspection, but the turn around time was incredibly fast. He is an absolute professional, and offers a first class service!
See All Reviews