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Pro Players Realty USA
““I chose to join Pro Players Realty USA because of the company’s local presence, superior tools and visionary leadership. Joining Pro Players Realty USA was the best thing I have done in a long time.
With their strong, local brand, marketing and unparalleled programs, they give their agents a sturdy platform to succeed. In today’s real estate industry, it’s important to align with a strong company and Pro Players Realty USA gives us that opportunity.
The level of personal support from John Stehmeyer has been great, and I am very excited to be part of this growing team and to get rid of the high monthly fees that I had been paying elsewhere. His concentration on technology and marketing, and the convenience of the other offices, will help me serve my clients well into the future.
I’m very excited about the opportunities that Pro Players Realty USA is now offering agents and clients.” One of my favorite incentives with Pro Players Realty USA is the IRA contribution and the residual income.
I could go on and on, but all I have to say is that if you’re looking to make a move, make it Pro Players Realty USA!”
Our agents have have trained professionally to become win win negotiators.
We put people first every time.
We will always analyze multiple strategies to help our clients find the most advantageous solutions that benefit all parties involved. We lay out multiple options and explain what is best about each one.
Our team can help you with Commercial and Residential real estate services from start to finish, including property management.
Call on us today at 850-942-SOLD (7653)
Are you considering a move from Tallahassee to a new city? Maybe you’re trying to make the choice between two or three potential options. If so, how you visit your future home can have a dramatic impact on which one makes the final cut.
By making a few subtle shifts in how you prepare for your visit (and how you spend your time while you’re in town), you can gain more useful insight into the community.
Tip 1: Stay a week if possible
While a long weekend might be your only shot, you can get a much better perspective on a place if you have enough time to unwind. A mix of weekdays and a weekend is a great way to get a view of the rhythm of the town. If you have a long time to plan, visit the place in Summer versus Winter, too.
Tip 2: Rent an apartment or house
A family living in a hotel is expensive and automatically puts you “outside” the community. With a little more room and the facilities of a real living space, you’ll get a better sense of what it might be like to “really be there.” Plus, avoiding the hotel will keep you off tourist-trap areas and hopefully away from major highways.
Tip 3: Explore some on foot
Driving aimlessly can be a good “survey” technique (and indeed, getting lost is a good idea, too), but walking neighborhoods and downtown districts will give you a vivid sense of the community.
Tip 4: Get the local low-down
Before you go, find friends-of-friends on Facebook and other social media sites who can give you an idea of the must-see places that locals love. Use this list as your guide, not the tourism brochures.
Tip 5: Pay attention to what matters to YOU
Remember: You’re the one thinking of living there. Don’t let what others see as the main benefit to the town be what guides your decision to live there. Go with your gut, your values, and your comfort level!
By the way, as an experienced Tallahassee Realtor, I’m glad to help you sell your Tallahassee, Florida home prior to the move, and refer you to a trusted agent in your destination city. Just get in touch!
Juanita Sapp, Realtor CDPE
1415 East Piedmont Drive Suite 5
Condition in a mortgage that could require the balance of the loan to become due immediately, if regular mortgage payments are not made or for a breach of other conditions of the mortgage.
An offeree’s consent to enter into a contract and be bound by the terms of the offer.
Interest earned on a security but not yet paid to the holder.
Additional principal payment
A payment by a borrower of more than the scheduled principal amount due in order to reduce the remaining balance on the loan.
Adjustable Mortgage Loan
Any mortgage that does not have a fixed interest rate and a fixed payment for the term of the loan, or does not amortize to zero at the end of the set term, when required payments are made on time.
Adjustable Rate Mortgage (ARM)
A mortgage in which the interest rate is adjusted periodically according to the movement in a pre-selected index.
The period that elapses between the adjustment dates for an adjustable-rate mortgage (ARM).
A payment plan, which enables the borrower to reduce his debt gradually through monthly payments of principal.
A timetable for payment of a mortgage loan. An amortization schedule shows the amount of each payment applied to interest and principal and shows the remaining balance after each payment is made.
The amount of time required to amortize the mortgage loan. The amortization term is expressed as a number of months.
Annual Percentage Rate (APR)
The cost of a mortgage stated as a simple annual percentage of the loan amount: includes the base interest rate, primary mortgage insurance, plus upfront costs such as points, various closing costs, and prepaid interest.
A form used to apply for a mortgage loan and to record pertinent information concerning a prospective borrower and the proposed security.
An opinion of a property’s fair market value, based on an appraiser’s knowledge, experience, and analysis of the property.
A person qualified by education, training, and experience to estimate the value of real property and personal property.
A professional opinion of the market value of a property.
An increase in the value of a house due to changes in market conditions or other causes.
The valuation placed upon property by a public tax assessor for purposes of taxation.
These loans may be passed on from a seller of a home to the buyer. The buyer “assumes” all outstanding payments.
A provision in an assumable mortgage that allows a buyer to assume responsibility for the mortgage from the seller. The loan does not need to be paid in full by the original borrower upon sale or transfer of the property.
Balloon Payment Mortgage
It is a mortgage which does not fully amortize over the term of the note, thus leaving a balance due at maturity. The final payment is called a balloon payment because of its large size.
A proceeding in a federal court in which a debtor who owes more than his or her assets can relieve the debts by transferring his or her assets to a trustee.
Income before taxes are deducted.
The person designated to receive the income from a trust, estate, or a deed of trust.
One who receives funds with the expressed or implied intention of repaying the loan in full.
A form of second trust that is collateralized by the borrower’s present home (which is usually for sale) in a manner that allows the proceeds to be used for closing on a new house before the present home is sold.
An individual in the business of assisting in arranging funding or negotiating contracts for a client but who does not loan the money himself. Brokers usually charge a fee or receive a commission for their services.
Money advanced by an individual (borrower, seller, builder, etc.) to reduce monthly payments for a home mortgage either during the entire term or for an initial period of years.
A provision of an ARM limiting how much the interest rate or mortgage payments may increase.
A refinance transaction in which the amount of money received from the new loan exceeds the total of the money needed to repay the existing first mortgage, closing costs, points, and the amount required to satisfy any outstanding subordinate mortgage liens.
Certificate of Veteran Status
A document form completed by the Department of Veteran affairs to establish a veteran’s eligibility for a VA Mortgage.
Chain of Title
The order of documents in which the title has been transferred from the original owner to the present owner.
The frequency (in months) of payment and/or interest rate changes in an adjustable-rate mortgage (ARM).
The occasion where a sale is finalized; the buyer signs the loan documents.
Expenses (over and above the price of the property) incurred by buyers and sellers in transferring ownership of a property. Also called “settlement costs.”
An additional borrower on a loan. A co-borrower’s obligation on a loan are the same as all other borrowers.
Someone who signs a credit agreement along with the borrower. The co-signer is legally obligated to assume responsibility for loan repayment if the borrower doesn’t.
An asset (such as a car or a home) that guarantees the repayment of a loan. The borrower risks losing the asset if the loan is not repaid according to the terms of the loan contract.
A formal offer by a lender stating the terms under which it agrees to loan money to a applicant.
Those portions of a building, land, and amenities owned (or managed) by a planned unit development (PUD) or condominium project’s homeowners’ association (or a cooperative project’s cooperative corporation) that are used by all of the unit owners, who share in the common expenses of their operation and maintenance. Common areas include swimming pools, tennis courts, and other recreational facilities, as well as common corridors of buildings, parking areas, means of ingress and egress, etc.
In some western and southwestern states, a form of ownership under which property acquired during a marriage is presumed to be owned jointly unless acquired as separate property of either spouse.
A abbreviation for comparable properties used for comparative purposes in the appraisal process; facilities of reasonably the same size and location with similar amenities; properties which have been recently sold, which have characteristics similar to property under consideration, thereby indicating the approximate fair market value of the subject property.
The taking of private property for public use by a government unit, against the will of the owner, but with payment of just compensation under the government’s power of eminent domain. Condemnation may also be a determination by a governmental agency that a particular building is unsafe or unfit for use.
Individual ownership of a dwelling unit and an individual interest in the common areas and facilities, which serve the multi-unit project.
Conforming Loan Limit
A mortgage for an amount up to the conforming loan limits set by the federal government. The Federal Housing Finance Agency (FHFA) publishes the conforming loan limits annually that apply to all conventional mortgages that are delivered to Fannie Mae, Freddie Mac & FHA including both the general loan limits and the high-cost area loan limits, also referred to as Conforming Plus limits. Currently, for a single-family residence the maximum conforming loan is $417,000 with higher conforming amounts applying to 2-4 unit properties.
Conforming Plus Loan Limit
(Also called high-cost conforming loan limit or a conforming jumbo loan) This is a new class of mortgage that provides higher loan limits for high-cost areas. These new limits are designed to make home ownership more affordable in areas with the highest home prices. Conforming Plus occupies a middle tier between conforming and jumbo mortgage loan limits. Currently, this limit extends beyond the conforming limit up to $729,750 depending on the area.
A short-term loan for funding the cost of construction. The lender advances funds to the builder as the work progresses.
A loan that starts out as a short term construction loan and then automatically converts to long term financing upon the completion of the construction
Consumer reporting agency (or bureau)
An organization that prepares reports that are used by lenders to determine a potential borrower’s credit history. The agency obtains data for these reports from a credit repository as well as from other sources.
A condition that must be met before a contract is legally binding.
An oral or written agreement to do or not to do a certain thing.
In the construction industry, a contractor is one who contracts to erect buildings or portions of them. There are also contractors for each phase of construction: heating, electrical, plumbing, air conditioning, road building, bridge and dam erection, and others.
Any mortgage that is not insured or guaranteed by the federal government.
A residential or mixed-use building wherein a corporation or trust holds title to the property and sells shares of stock representing the value of a single apartment unit to individuals who, in turn, receive a proprietary lease as evidence of title.
Cost of funds index (COFI)
An index that is used to determine interest rate changes for certain adjustable-rate mortgage (ARM) plans. It represents the weighted-average cost of savings, borrowings, and advances of the 11th District members of the Federal Home Loan Bank of San Francisco.
A record of an individual’s open and fully repaid debts. A credit history helps a lender to determine whether a potential borrower has a history of repaying debts in a timely manner.
A person to whom money is owed.
A report of an individual’s credit history prepared by a credit bureau and used by a lender in determining a loan applicant’s creditworthiness.
An organization that gathers, records, updates, and stores financial and public records information about the payment records of individuals who are being considered for credit.
A deed given by a mortgagor to the mortgagee to satisfy a debt and avoid foreclosure. Also called a “voluntary conveyance.”
Deed of Trust
Like a mortgage, a security instrument whereby real property is given as security for a debt. However, in a deed of trust there are three parties to the instrument: the borrower, the trustee, and the lender, (or beneficiary). In such a transaction, the borrower transfers the legal title for the property to the trustee who holds the property in trust as security for the payment of the debt to the lender or beneficiary. If the borrower pays the debt as agreed, the deed of trust becomes void. If, however, he defaults in the payment of the debt, the trustee may sell the property at a public sale, under the terms of the deed of trust. In most jurisdictions where the deed of trust is in force, the borrower is subject to having his property sold without benefit of legal proceedings. A few States have begun in recent years to treat the deed of trust like a mortgage.
Failure to make mortgage payments on a timely basis or to comply with other conditions of a mortgage.
A court order to pay the balance owed on a loan if the proceeds from the sale of the security are insufficient to pay off the loan. Deficiency judgments are not allowed in all states.
A loan in which a payment is overdue but not yet in default.
A sum of money given to bind the sale of real estate, or a sum of money given to ensure payment or an advance of funds in the processing of a loan.
A decline in the value of property; the opposite of “appreciation.”
A State tax, in the forms of stamps, required on deeds and mortgages when real estate title passes from one owner to another. The amount of stamps required varies with each State.
The part of the purchase price, which the buyer pays in cash and does not finance with a mortgage
A provision in a mortgage that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the mortgage.
The deposit money given to the seller or his agent by the potential buyer upon the signing of the agreement of sale to show that he is serious about buying the house. If the sale goes through, the earnest money is applied against the down payment. If the sale does not go through, the earnest money may be forfeited or lost unless the binder or offer to purchase expressly provides that it is refundable.
A right-of-way granted to a person or company authorizing access to or over the owner’s land. An electric company obtaining a right-of-way across private property is a common example.
An appraiser’s estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.
Effective gross income
Normal annual income including overtime that is regular or guaranteed. The income may be from more than one source. Salary is generally the principal source, but other income may qualify if it is significant and stable.
The right of a government to take private property for public use upon payment of its fair market value. Eminent domain is the basis for condemnation proceedings.
An obstruction, building, or part of a building that intrudes beyond a legal boundary onto neighboring private or public land, or a building extending beyond the building line.
A legal right or interest in land that affects a good or clear title, and diminishes the land’s value. It can take numerous forms, such as zoning ordinances, easement rights, claims, mortgages, liens, charges, a pending legal action, unpaid taxes, or restrictive covenants. An encumbrance does not legally prevent transfer of the property to another. A title search is all that is usually done to reveal the existence of such encumbrances, and it is up to the buyer to determine whether he wants to purchase with the encumbrance, or what can be done to remove it.
A person who signs ownership interest over to another party. Contrast with co-maker.
Equal Credit Opportunity Act (ECOA)
A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.
The difference between the market value of a property and the homeowner’s outstanding mortgage balance.
A loan based on the borrower’s equity in his or her home.
The account in which a mortgage servicer holds the borrower’s escrow payments prior to paying property expenses, such as property taxes and hazard insurance.
Funds collected by the servicer and set aside in an escrow account to pay the borrower’s property taxes, mortgage insurance, and hazard insurance.
The portion of a mortgagor’s monthly payment that is held by the servicer to pay for taxes, hazard insurance, mortgage insurance, and other items as they become due.
The ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death.
The lawful expulsion of an occupant from real property.
Examination of title
The report on the title of a property from the public records or an abstract of the title.
A person named in a will to administer an estate
Fair Credit Reporting Act
A consumer protection law that regulates the disclosure of consumer credit reports by consumer/credit reporting agencies and establishes procedures for correcting mistakes on one’s credit record.
Fair Market Value
The highest price that a buyer, willing but not compelled to buy would pay, and the lowest a seller, willing but not compelled to sell, would accept.
(Federal National Mortgage Association, FNMA). A government-sponsored corporation, owned solely by private investors, created to provide support to the secondary market for FHA and VA mortgages and conventional mortgages.
(Federal Deposit Insurance Corporation). Provides insurance of accounts for institutions whose deposits were formerly covered by the Federal Savings & Loan Insurance Corporation. (FSLIC).
The greatest possible interest a person can have in real estate.
Fee simple estate
An unconditional, unlimited estate of inheritance that represents the greatest estate and most extensive interest in land that can be enjoyed. It is of perpetual duration. When the real estate is in a condominium project, the unit owner is the exclusive owner only of the air space within his or her portion of the building (the unit) and is an owner in common with respect to the land and other common portions of the property.
(Federal Housing Administration). A division of the Department of Housing and Urban Development. The FHA’s main activity is the insuring of residential mortgage loans made by private lenders. It sets standards for construction and underwriting. FHA neither lends money, nor plans, nor constructs housing.
Government loans are loans that are guaranteed or purchased by government organizations. Two of the most popular Government Loans are the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA).
(Federal Housing Finance Board). It oversees the credit functions of the twelve regional Federal Home Loan Banks.
(Federal Home Loan Bank Board). A regulatory and supervisory agency for federally charted savings institutions, which oversees the operations of the FSLIC and FHLMC. This agency was abolished by the Financial Institutions Reform, Recovery and Enforcement Act of 1989. (See FIRREA.)
(Federal Home Loan Mortgage Corporation, Freddie Mac). A private corporation authorized by Congress, which became an independent, stockholder-owned government corporation with the passage of FIRREA. FHLMC promotes the flow of funds into the housing markets by purchasing conventional mortgages in the secondary market and selling securities backed by those mortgages in the capital market.
Credit scoring which is a formula for credit risk assessment that is believed to be highly predictive of future payment risk.
The total dollar amount your loan will cost you. It includes all interest payments for the life of the loan, any interest paid at closing, your origination fee and any other charges paid to the lender and/or broker. Appraisal, credit report and title search fees are not included in the finance charge calculation.
The mortgage that has first claim in the event of default.
The monthly payment due on a mortgage loan.
(FRM) A mortgage in which the interest rate does not change during the entire term of the loan.
(Federal National Mortgage Association, Fannie Mae). A government-sponsored corporation, owned solely by private investors, created to provide support to the secondary market for FHA and VA mortgages and conventional mortgages.
Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas.
The process by which a mortgage property may be sold when a mortgage is in default.
(Federal Home Loan Mortgage Corporation, FHLMC). A private corporation authorized by Congress, which became an independent, stockholder-owned government corporation with the passage of FIRREA. FHLMC promotes the flow of funds into the housing markets by purchasing conventional mortgages in the secondary market and selling securities backed by those mortgages in the capital market.
Fully amortized ARM
An adjustable-rate mortgage (ARM) with a monthly payment that is sufficient to amortize the remaining balance, at the interest accrual rate, over the amortization term.
Fully Indexed Accrual Rate
The interest (accrual) rate resulting from the index at closing (or at another point in the loan) plus the lender’s full spread, rounded as prescribed in the loan documents (often to the nearest 1/8th of 1%).
General Warranty Deed
A deed which conveys not only all the grantor’s interests in and title to the property to the grantee, but also warrants that if the title is defective or has a “cloud” on it (such as mortgage claims, tax liens, title claims, judgments, or mechanic’s liens against it) the grantee may hold the grantor liable.
Good Faith Estimate
An estimate of charges, which a borrower is likely to incur in connection with a loan closing.
Government Loans FHA / VA
Government loans are loans that are guaranteed or purchased by government organizations. Two of the most popular Government Loans are the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA).
Graduated Payment Mortgage
(GPM) A mortgage where the payments are scheduled to increase, usually annually, for a set number of years, and then level off. GPM can be used with either a fixed or adjustable interest rate, and usually has a 30-year term.
That party in the deed who is the buyer or recipient.
That party in the deed who is the seller or giver.
Gross Monthly Income
The total amount the borrower earns per month, not counting any taxes or expenses. Often used in calculations to determine whether a borrower qualifies for a particular loan.
Insurance to protect the homeowner and the lender against physical damage to a property from fire, wind, vandalism, or other hazards.
HELOC (Home Equity Line of Credit)
It is a loan set up as a line of credit for some maximum draw, rather than for a fixed dollar amount taken as a one time lump sum. HELOCs have a draw period, during which the borrower can use the line, and a repayment period during which it must be repaid. Draw periods are usually 5 to 15 years, during which the borrower is only required to pay interest and my re-draw any amounts paid back. Repayment periods are usually 10 to 20 years, during which the borrower must make payments to principal equal to the balance at the end of the draw period divided by the number of months in the repayment period. The exact terms will vary depending on the lender.
An insurance policy that combines liability coverage and hazard insurance.
(Department of Housing and Urban Development). A cabinet department responsible for the implementation and administration of government housing and urban development programs.
Real estate developed or improved to produce income.
(Also called “Rate Index”). A regularly published rate, independent of the lending institution, that measures the prevailing cost of funds, and is used periodically with the margin to set AML accrual rates.
Initial Borrower Interest Rate
The rate on which the borrower’s first payment is calculated.
Initial Borrower Payment Rate
The annual interest rate used to calculate the borrower’s initial cash payment.
An increase in the amount of money or credit available in relation to the amount of goods or services available, which causes an increase in the general price level of goods and services. Over time, inflation reduces the purchasing power of a dollar, making it worth less.
Initial interest rate
The original interest rate of the mortgage at the time of closing.
The regular periodic payment that a borrower agrees to make to a lender.
Borrowed money that is repaid in equal payments, known as installments. A furniture loan is often paid for as an installment loan.
A property title that a title insurance company agrees to insure against defects and disputes.
A contract that provides compensation for specific losses in exchange for a periodic payment. An individual contract is known as an insurance policy, and the periodic payment is known as an insurance premium.
A document that states that insurance is temporarily in effect. Because the coverage will expire by a specified date, a permanent policy must be obtained before the expiration date.
A mortgage that is protected by the Federal Housing Administration (FHA) or by private mortgage insurance (MI). If the borrower defaults on the loan, the insurer must pay the lender the lesser of the loss incurred or the insured amount
The fee charged for borrowing money.
Interest accrual rate
The percentage rate at which interest accrues on the mortgage. In most cases, it is also the rate used to calculate the monthly payments, although it is not used for an adjustable-rate mortgage (ARM) with payment change limitations.
It is a loan in which, for a set term, the borrower is only required to pay the interest on the principal balance. At the end of the interest-only term the loan may have a balloon payoff or may simply convert to a fully amortized loan for the reminder of the loan term. If the borrower exercises the interest-only option every month during the interest-only period, the payment will not include any repayment of principal. The result is that the loan balance will remain unchanged at the end of the interest-only period.
The percentage of an amount of money, which is paid for its use for a specified time.
Interest Rate Cap
A provision of an ARM limiting how much interest rates may increase per adjustment period.
Interest rate ceiling
For an adjustable-rate mortgage (ARM), the maximum interest rate, as specified in the mortgage note.
Interest rate floor
For an adjustable-rate mortgage (ARM), the minimum interest rate, as specified in the mortgage note.
A property that is not occupied by the owner.
A form of co-ownership that gives each tenant equal interest and equal rights in the property, including the right of survivorship.
A decision made by a court of law. In judgments that require the repayment of a debt, the court may place a lien against the debtor’s real property as collateral for the judgment’s creditor.
A lien on the property of a debtor resulting from the decree of a court.
A type of foreclosure proceeding used in some states that is handled as a civil lawsuit and conducted entirely under the auspices of a court.
Jumbo, or non-conforming, is a term used to describe a loan that does not conform to Fannie Mae or Freddie Mac guidelines. The typical Jumbo loan exceeds the maximum loan limits of conforming and conforming plus loans. The threshold for determining a loan to be a Jumbo loan varies depending on state and sometimes counties.
The penalty a borrower must pay when a payment is made a stated number of days (usually 15) after the due date.
A written agreement between the property owner and a tenant that stipulates the conditions under which the tenant may possess the real estate for a specified period of time and rent.
A way of holding title to a property wherein the mortgagor does not actually own the property but rather has a recorded long-term lease on it.
A property description, recognized by law that is sufficient to locate and identify the property without oral testimony.
An institution that makes loans to borrowers on real estate.
A person’s financial obligations. Liabilities include long-term and short-term debt, as well as any other amounts that are owed to others.
A legal claim against a property that must be paid when the property is sold.
A provision of an ARM that limits the total increase in interest rates over the life of the loan.
Lifetime payment cap
For an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase or decrease over the life of the mortgage.
Line of credit
An agreement by a commercial bank or other financial institution to extend credit up to a certain amount for a certain time to a specified borrower.
A cash asset or an asset that is easily converted into cash.
A sum of borrowed money (principal) that is generally repaid with interest.
Formal offer by a lender stating the terms under which it agrees to loan money to an applicant.
The process by which a mortgage lender brings into existence a mortgage secured by real property.
The collection of mortgage payments from borrowers and related responsibilities of a loan servicer.
(LTV). The loan-to-value ratio (LTV) is the original loan amount divided by the lower of the sales price or the appraised value.
The period, expressed in days, during which a lender will guarantee a rate.
The time period during which the lender has guaranteed an interest rate to a borrower.
A title that is free and clear of objectionable liens, clouds, or other title defects. A title which enables an owner to sell his property freely to others and which others will accept without objection.
The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable.
Merged credit report
A credit report that contains information from three credit repositories. When the report is created, the information is compared for duplicate entries. Any duplicates are combined to provide a summary of a your credit.
(Also called “Spread”). The amount the lender adds to the index to determine the Fully Indexed Accrual Rate.
A legal document that pledges a property to the lender as security for a payment of a debt.
A company that originates mortgages exclusively for resale in the secondary market.
A company that for a fee matches borrowers with lenders.
Mortgage Insurance Premium
(MIP). The fee paid to FHA or a private insurer for mortgage insurance.
The lender in a mortgage agreement.
A written notice from the bank or other lending institution saying it will advance mortgage funds in a specified amount to enable a buyer to purchase a house.
Mortgage Insurance Premium
The payment made by a borrower to the lender for transmittal to HUD to help defray the cost of the FHA mortgage insurance program and to provide a reserve fund to protect lenders against loss in insured mortgage transactions.
A written agreement to repay a loan. The agreement is secured by a mortgage, serves as proof of indebtedness, and states the manner in which it shall be paid. The note states the actual amount of the debt that the mortgage secures and renders the mortgagor personally responsible for repayment.
The borrower in a mortgage agreement.
Properties that provide separate housing units for more than one family, although they secure only a single mortgage.
A residential mortgage on a dwelling that is designed to house more than four families, such as a high-rise apartment complex.
(Also called “Deferred Interest”). If the payments are too small to cover the interest due on a loan, the remaining interest owed is added to the outstanding loan balance, causing negative amortization.
Net cash flow
The income that remains for an investment property after the monthly operating income is reduced by the monthly housing expense, which includes principal, interest, taxes, and insurance (PITI) for the mortgage, homeowners’ association dues, leasehold payments, and subordinate financing payments.
Net Effective Income
Gross income less federal income tax.
The value of all assets, including cash, less total liabilities.
No cash-out refinance
A refinance transaction in which the new mortgage amount is limited to the sum of the remaining balance of the existing first mortgage, closing costs (including prepaid items), points and non recurring costs but does not pay any other debt or provide borrower with any cash in hand.
An asset that cannot easily be converted into cash.
A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.
The interest rate stated on a mortgage note.
Notice of Default
A formal written notice to a borrower that a default has occurred and that legal action may be taken.
Original principal balance
The total amount of principal owed on a mortgage before any payments are made.
A fee paid to a lender for processing a loan Application.
(The Office of Thrift Supervision). Charters federal thrifts, serves as the primary federal examiner and regulator of federal and state-chartered savings associations, and administers laws governing savings and loan holding companies.
A property purchase transaction in which the property seller provides all or part of the financing.
“Owner Occupied” means the property is the owner’s primary residence.
Payment Adjustment Period
The length of time (typically a year) between changes to the AML borrower’s P&I payment.
Payment Buy down
Payment buy downs occur when a third party, typically a builder, pays part of the initial P&I payments for a year or two, so that the borrower has smaller payments and can qualify for the loan.
A limit on the amount the payment can be changed at the end of each Payment Adjustment Period.
In a payment discount, the lender reduces the first year’s interest rate to make the mortgagor more attractive to borrowers.
Periodic payment cap
A limit on the amount that payments can increase or decrease during any one-adjustment period.
Periodic rate cap
A limit on the amount that the interest rate can increase or decrease during any one adjustment period, regardless of how high or low the index might be.
Any property that is not real property.
Principal, Interest, Taxes and Insurance are components of a mortgage payment.
A map or chart of a lot, subdivision or community drawn by a surveyor showing boundary lines, buildings, improvements on the land, and easements.
A one-time charge by the lender to increase the yield of the loan; a point is 1 percent of the amount of the mortgage.
Power of attorney
A legal document that authorizes another person to act on one’s behalf. A power of attorney can grant complete authority or can be limited to certain acts and/or certain periods of time.
Payment of mortgage loan, or part of it, before due date.
The process of determining how much money a prospective homebuyer will be eligible to borrow before application.
The interest rates that banks charge to their preferred customers. The prime rate, as reported by the Wall Street Journal’s bank survey, is among the most widely used benchmark in setting home equity lines of credit. The Prime Rate is usually adjusted at the same time and in correlation to the adjustments of the Federal Funds Rate.
The amount borrowed or remaining unpaid, also, that part of the monthly payment that reduces the outstanding balance of a mortgage.
Private Mortgage Insurance
Insurance provided by nongovernmental insurers that protect lenders against loss if a borrower defaults.
A written promise to repay a specified amount over a specified period of time.
Planned Unit Development (PUD)
A project or subdivision that includes common property that is owned and maintained by a homeowners’ association for the benefit and use of the individual PUD unit owners.
An agreement of sale between a seller and buyer that spells out the complete terms and compensation involved in the transfer of title.
Purchase money transaction
The acquisition of property through the payment of money or its equivalent.
Guidelines applied by lenders to determine how large a loan to grant a homebuyer.
A deed, which transfers whatever interest, the maker of the deed may have in the particular parcel of land. A quitclaim deed is often given to clear the title when the grantor’s interest in a property is questionable. By accepting such a deed the buyer assumes all the risks. Such a deed makes no warranties as to the title, but simply transfers to the buyer whatever interest the grantor has.
A radioactive gas found in some homes that in sufficient concentrations could cause health problems.
(Also called “Interest Rate Caps”). A limit on the amount of which the interest rate charged to the borrower can be changed.
A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate for a specified period of time.
Real Estate Broker
A middleman or agent who buys and sells real estate for a company, firm, or individual on a commission basis. The broker does not have title to the property, but generally represents the owner.
Real Estate Owned
(REO). A term frequently used by lending institution as applied to ownership of real property acquired for investment or as a result of foreclosure.
(Real Estate Settlement Procedures Act). A Federal law that requires lenders to provide home mortgage borrowers with information about known or estimated settlement costs.
Land and appurtenances, including anything of a permanent nature such as structures, trees, minerals, and the interest, benefits, and inherent rights thereof.
A real estate broker or an associate who holds active membership in a local real estate board that is affiliated with the National Association of Realtors.
The cancellation or annulment of a transaction or contract by the operation of a law or by mutual consent.
The public official who keeps records of transactions that affects real property in the area.
The noting in the registrar’s office of the details of a properly executed legal document, such as a deed, a mortgage note, a satisfaction of mortgage, or an extension of mortgage, thereby making it a part of the public record.
The process of the same mortgagor paying off one loan with the proceeds from another loan.
A mortgage created to cover the costs of repairing, improving, and sometimes acquiring an existing property.
A reverse mortgage enables older homeowners (62+) to convert part of the equity in their homes into tax-free cash without having to sell the home, give up title, or take on a new monthly mortgage payment. The reverse mortgage is aptly named because the payment stream is “reversed.” Instead of making monthly payments to a lender, as with a regular mortgage, a lender makes payments to the homeowner. Interest is not paid out of your available loan proceeds, but instead compounds over the life of the loan until repayment occurs.
The amount of principal that has not yet been repaid.
The original amortization term minus the number of payments that have been applied.
A credit arrangement, such as a credit card, that allows a customer to borrow against a pre-approved line of credit when purchasing goods and services. The borrower is billed for the amount that is actually borrowed plus any interest due.
Right of first refusal
A provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before he or she offers it for sale or lease to others.
Right of ingress or egress
The right to enter or leave designated premises.
Right of survivorship
In joint tenancy, the right of survivors to acquire the interest of a deceased joint tenant.
See Purchase Contract.
A mortgage that has rights that are subordinate to the rights of the first mortgage holders.
Secondary Mortgage Market
A market that facilitates the buying and selling of existing mortgages.
(Also called “Seller Contributions”). Seller-provided funds include all transaction cost paid by the seller on behalf of the buyer except the real estate agent’s (or brokers) fee and charges already stated to be seller’s responsibility per the contract
The party who has entered into an agreement with the insured to service a loan.
See Closing Costs.
A premium, which provides coverage for more than a year.
A special tax imposed on property, individual lots or all property in the immediate area, for road construction, sidewalks, sewers, streetlights, etc.
A lien that binds a specified piece of property, unlike a general lien, which is levied against all one’s assets. It creates a right to retain something of value belonging to another person as compensation for labor, material, or money expended in that person’s behalf. In some localities it is called “particular” lien or “specific” lien.
Special Warranty Deed
A deed in which the grantor conveys title to the grantee and agrees to protect the grantee against title defects or claims asserted by the grantor and those persons whose right to assert a claim against the title arose during the period the grantor held title to the property. In a special warranty deed the grantor guarantees to the grantee that he has done nothing during the time he held title to the property which has, or which might in the future, impair the grantee’s title.
A map or plat made by a licensed surveyor showing the results of measuring the land with its elevations, improvements, boundaries, and its relationship to surrounding tracts of land. A survey is often required by the lender to assure him that a building is actually sited on the land according to its legal description.
As applied to real estate, an enforced charge imposed on persons, property or income, to be used to support the State. The governing body in turn utilizes the funds in the best interest of the general public.
A claim against real estate for the amount of its unpaid taxes.
Similar to a Payment Discount, but implies either an unusually large initial rate discount or an attempt by the lender to lure an otherwise unqualified borrower into the mortgage.
Tenancy by the entirety
A type of joint tenancy of property that provides right of survivorship and is available only to a husband and wife. Contrast with tenancy in common.
Tenancy in common
A type of joint tenancy in a property without right of survivorship. Ownership can be held in equal shares or unequal shares amount two or more people.
A process by which a lender uses another party to completely or partially originate, process, underwrite, close, fund, or package the mortgages it plans to deliver to the secondary mortgage market.
As generally used, the rights of ownership and possession of particular property. In real estate usage, title may refer to the instruments or documents by which a right of ownership is established (title documents), or it may refer to the ownership interest one has in the real estate.
A company that specializes in examining and insuring titles to real estate.
Protects lenders or homeowners against loss of their interest in property due to legal defects in title. Title insurance may be issued to a “mortgagee’s title policy.” Insurance benefits will be paid only to the “named insured” in the title policy, so it is important that an owner purchase an “owner’s title policy”, if he desires the protection of title insurance.
Title Search or Examination
A check of the title records, generally at the local courthouse, to make sure the buyer is purchasing a house from the legal owner and there are no liens, overdue special assessments, or other claims or outstanding restrictive covenants filed in the record, which would adversely affect the marketability or value of title.
Total Debt Ratio
Monthly debt and housing payments divided by gross monthly income. Also known as Back-End Ratio.
Total expense ratio
Total obligations as a percentage of gross monthly income. The total expense ratio includes monthly housing expenses plus other monthly debts.
Transfer of ownership
Any means by which the ownership of a property changes hands. Lenders consider all of the following situations to be a transfer of ownership: the purchase of a property “subject to” the mortgage, the assumption of the mortgage debt by the property purchaser, and any exchange of possession of the property under a land sales contract or any other land trust device. In cases in which an inter vivos revocable trust is the borrower, lenders also consider any transfer of a beneficial interest in the trust to be a transfer of ownership.
State or local tax payable when title passes from one owner to another.
An index that is used to determine interest rate changes for certain adjustable-rate mortgage (ARM) plans.
A party who is given legal responsibility to hold property in the best interest of or “for the benefit of” another. The trustee is one placed in a position of responsibility for another, a responsibility enforceable in a court of law.
(TIL). A federal law that requires lenders to fully disclose, in writing, the terms and conditions of a mortgage, including the APR and other charges.
Two- to four-family property
A property that consists of a structure that provides living space (dwelling units) for two to four families, although ownership of the structure is evidenced by a single deed.
The process of evaluating a loan application to determine the risk involved for the lender. Underwriting involves an analysis of the borrower’s creditworthiness and the quality of the property itself.
A loan that is not backed by collateral.
USDA Home Loans
These mortgages are offered in rural areas as determined by the United States Department of Agriculture (USDA). The USDA’s mission is to help lower income households obtain home loans at reasonable mortgage rates. USDA home loans offer many advantages, including 100% financing, to eligible borrowers who wish to finance properties that are eligible under the program.
An agency of the federal government that guarantees residential mortgages made to eligible veterans of the military services. The guarantee protects the lender against loss and thus encourages lenders to make mortgages to veterans.
Having the right to use a portion of a fund such as an individual retirement fund.
A mortgage that includes the remaining balance on an existing first mortgage plus an additional amount requested by the mortgagor. Full payments on both mortgages are made to the wraparound mortgagee, who then forwards the payments on the first mortgage to the first mortgagee.
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|Consumer Newsletter – July 2012||www.sres.org|
Seniors Real Estate Specialist Newsletter – Helping Seniors Live Better!
By Elyse Umlauf-Garneau
Fend Off Loneliness
Caretakers of elderly parents and relatives often feel relieved once they’ve resolved the housing and aging-in-place challenges. But a key missing piece of that care puzzle could be the seniors’ social and mental well-being.
Study results released in June 2012 by the University of California San Francisco (www.ucsf.edu/news/2012/06/12184/loneliness-linked-serious-health-problems-and-death-among-elderly) show a direct correlation between loneliness and poor health among the elderly.
It found that loneliness can affect a person’s ability to perform daily activities, such as upper extremity tasks, climbing stairs, and walking. Moreover, people who identified themselves as lonely had a 59 percent greater risk of decline and a 45 percent greater risk of death.
If you suspect that your loved ones are lonely, getting them out and involved could help them fend off boredom, isolation, and loneliness.
Here are eight ideas:
1. Art as therapy. Try an art class, but one that isn’t strictly for seniors. Your loved ones will meet people of all ages, broaden their social horizon, and learn a new skill. And just because someone can’t draw doesn’t mean they can’t be a successful artist. Other media include pottery, printmaking, and fiber arts.
2. Computer literacy. Widen your parents’ and elderly relatives’ world by teaching them how to use a computer, and introduce them to Facebook, blogging and Twitter.
A Pew Research report (www.pewinternet.org/Reports/2012/Older-adults-and-internet-use/Main-Report/Internet-adoption.aspx) found that seniors really take to the online life. For many, using the internet and e-mail has become a daily habit.
Before they make their online debut, be sure that seniors know the risks and what precautions to take to protect their accounts and their privacy.
Provide some basics on searching for sites specific to their interests. There’s www.anobii.com for bookworms, www.ravelry.com for knitters, and www.care2.com for eco-minded people.
3. Meet-ups. The site, www.Meetup.com, lets people interested in a given topic or activity find one another online then organize in-person get-togethers. You can find book clubs, art outings, and political activism events, as well as people who are interested in discussing Shakespeare and practicing ballroom dancing.
4. Man’s best friend. There’s a reason that dogs are called man’s best friend. They bring joy and laughter, they’re affectionate, and they provide companionship. In addition, daily walks with dogs force seniors to get all-important exercise and help them connect with other dog owners.
Just take a look at local parks during dog-walking hours. You see dogs romping and pet owners schmoozing. A dog could be the gateway to better health and stronger social connections for your loved one.
5. Mind share. Suggest volunteering, but not at a place where there are sad, distressed people. Hospitals, for example, might not be the place to lift a persons’ spirit.
But zoos, conservatories, and kid-centered activities all can be uplifting. And if your relatives have special talents to share, help them find places where they can teach their skills to others. Search for volunteer opportunities at www.seniorcorps.gov/Default.asp.
6. Tutoring. Your relatives’ knowledge could be helpful for tutoring programs for kids needing math and reading help or to participants in adult literacy programs. Plus, the one-on-one relationship that develops can be satisfying and beneficial for both parties.
Find opportunities by getting in touch with local schools and religious institutions or search for U.S. opportunities at www.volunteermatch.org. In Canada, visit www.volunteer.ca and www.getinvolved.ca. Or search your province for regional and city-specific organizations, such as British Columbia’s www.volunteerbc.bc.ca and Ottawa’s www.volunteerottawa.ca. Also, such sites help you locate volunteer activities beyond tutoring.
7. Political activism. This is an election year in the United States, so campaigns are on the hunt for volunteers. If your relatives are politically active, there’s likely a campaign that can tap their skills over the coming months.
8. Inclusive celebrations. Invite elderly neighbors to dinner parties, backyard BBQs and neighborhood social events. If transportation or walking is a problem, they may decline. So when you extend the invitation, offer to pick them up and take them home.
A place to vent
Who hasn’t had a bad experience dealing with a credit card problem? Typically you’re left to resolve problems on your own with your financial institution.
And you think your issue is an isolated incident.
But now there’s a place to find out that you’re not alone. And to complain.
Just this month, the Consumer Financial Protection Bureau (CFPB) (www.consumerfinance.gov) gave the public access to a beta version of a database that tracks credit card complaints.
Visitors can get a sense of the most common consumer gripes, the card issuers that people are complaining about, and they can also see how effectively financial institutions resolve problems.
The CFPB also lets consumers log complaints and find resolutions to the credit card problems that plague them. CFPB accepts, screens, and investigates consumer complaints and forwards them to the financial institution. Those institutions have a set period to respond to and resolve the problem.
Submit a complaint at and search the database, www.consumerfinance.gov/complaintdatabase, to get more insight on common complaints. Billing disputes and disagreements about APR and interest rates top CFPB’s list of gripes.
One aim of the database is greater transparency, and it also can help you when you’re deciding which institutions to do business with.
Though this database is focused on credit cards, the CFPB is considering developing similar databases for other consumer financial products and services.
Coming home from the hospital
Doctors do a great job of explaining the medical aspects of recovery from surgical procedures.
But they’re not always great about outlining the practical day-to-day challenges that caregivers need to address. To make your patient’s recovery easier in the days after a surgery, be sure to understand and plan for the non-medical aspects of daily care.
Here are some considerations:
1. Gear. Find out what extra things to have on hand to keep the person comfortable. Small pillows may be needed to prop up an arm or an ankle. Towels can be rolled up to support the back. Cloth baby diapers can prevent chafing and neck strain when someone is wearing a sling.
The bathroom can be especially dangerous, so consider adding grab bars or renting stools and shower chairs. Also, ask about the strategies and other devices that will boost your patient’s comfort and safety.
2. Clothing. Zippers and buttons suddenly become difficult to operate when you’ve had certain surgeries. Think about the clothes that will be easiest to get on and off and which garments will afford your loved ones the greatest independence.
An arm injury, for example, can make putting on t-shirts and pullover sweaters impossible. So think oversized shirts with Velcro closures as an alternative.
3. Safe house. Even if your spouse or parent normally is nimble, surgery can temporarily diminish their agility. Be certain that the house is safe for them to navigate, especially if they’ll be taking pain medications that cause grogginess or if they’ll be using a wheelchair or walker.
Move furniture they can bump into, pick up throw rugs that can cause trips, and remove delicate decorative items from tables.
4. Medical-related duties. You could be charged with changing bandages, taking slings on and off, and managing other medical devices. Be certain that you get some lessons on carrying out your duties before you leave the medical center.
5. Smooth moves. Talk to nurses and physical therapists about the proper placement and bracing of walkers and other assistive devices. Helping patients in and out of bed and up from chairs doesn’t entail brute force. Learn to protect your body when you’re moving and shifting patients and understand how best to provide support.
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Real Estate Matters: News & Issues for the Mature Market
Global financial services and asset-management firm Morgan Stanley (MS: 30.77 -1.25%) posted $413m of income from continuing operations in the fourth quarter of 2009, compared with a loss of $10.5bn in the previous-year period.
Net revenue of $6.8bn in Q409 brings the full-year net income to $1.35bn, compared with a net loss of $246m in 2008.
Firm-wide results for the full year reflected $1.9bn of net losses on real estate investments “amidst the ongoing industry-wide decline in this market,” Morgan Stanley said in the earnings statement.
Investment gains in the firm’s institutional securities division were $61m in the quarter, compared with year-ago losses of $1.85bn, driven primarily by gains on real estate investments. The increased gains drove full-year 2009 investment losses to $900m, compared with $2.7bn losses in the previous year.
Morgan Stanley’s asset management division saw a pre-tax loss of $55m in the quarter, despite net revenues in the Merchant Banking unit of $153m, driven by principal investment gains the real estate business.
The Tallahassee economic recovery is getting little help from the home building industry. Construction of homes unexpectedly plunged last month to its lowest point since April, the Commerce Department reported on Wednesday.
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