LEARN THESE 50 IMPORTANT REAL ESTATE AND LENDING INDUSTRY WORDS AND PHRASES Addendum
An addendum is an addition to a contract. Addendums often clarify offer letters or modify terms of a contract.
Adjustable-Rate Mortgage
Adjustable-rate mortgages (ARM) have an interest rate that changes over time. It usually begins with a lower interest rate than fixed-rate mortgages, but typically changes to follow market rates.
Amortization
Amortization refers to a payment schedule showing what goes toward principal and interest balances. Typically, payment goes toward interest first and then the principal balance.
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MOAB AREA REAL ESTATE MAGAZINE July–August 2022
Annual Percentage Rate (APR)
APR is the annual cost of a loan expressed as an interest rate. It often includes loan origination fees, most closing costs, mortgage interest and any discount points.
Appraisal
Appraisals are an expert’s opinion of a home’s market value. Appraisers examine a home’s condition, location and similar properties recently sold. By law, appraisals are done by neutral third parties with no interest in the sale.
Appreciation
Appreciation is the amount a home’s value increases over time. Historically,
real estate has appreciated an average of about 4% per year in the United States.
As-Is
When a seller stipulates that they will not make any changes to a home, the home is being sold as-is.
Assessed Value
Typically, the value placed on property for the purpose of taxation.
Backup Offer
If a buyer wants a home already under contract, they may request to be second in line by submitting a back-up offer. There can legally only be one backup offer on a home at any given time.
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