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Balloon Loan-- A mortgage that has a substantial amount of the principal due at the maturity of the note.
Broker-- A person licensed by a state real estate commission to act independently in conducting a real estate brokerage business.
Buydown-- A payment to the lender from the seller, buyer or third party, causing the lender to reduce the interest rate during the early years of the loan.
Cap-- A maximum amount of interest that can be charged.
Closing-- The final step in transferring ownership of a property from seller to buyer.
Closing Costs-- Fees and expenses, not including the price of the home, payable by the seller and the buyer at the time of closing.
Contingency-- A condition that must be satisfied before a contract is binding.
Conventional Loan-- A fixed-rate, fixed term loan that is made without government insurance.
Convertible ARM-- Loans that give you the opportunity to convert to a fixed-rate mortgage, usually between the 13th to 60th month of the loan.
Cooperatives (co-ops) - A buyer purchases shares in a co-op corporation, made up of the residents in the co-op property. The buyer owns the shares rather than owning the real property. In exchange, the buyer has the right to occupy a co-op unit.
Deed-- A legal document conveying title to a property.
Depreciation-- Refers to when a property's value decreases.
Earnest Money-- A payment given to the seller by a potential buyer indicating the buyer's intent to complete the purchase of the property.
Equity-- The owner's value or interest in a property.
Escrow-- The placement of money or documents with a third party for safekeeping pending the fulfillment or performance of a specific act or condition.
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