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What To Know When Buying A Home - Online Essays

What To Know When Buying A Home

As each American ventures into their journey through the “game of life”; one often begins with finding a home. Some prefer renting; yet, many prefer to buy a home. Buying a home can be exciting and perplexed. Getting the proper information can greatly help ease the anxiety and fears of such a great purchase.
The first step for a homebuyer is to understand the basic terminology used by banking institutions. Here is a short list of a few common terms:
Adjustable Rate Mortgage (ARM)- interest rates on this type of mortgage are periodically adjusted up or down, depending on the financial index.
Amortization- a method of equalizing the monthly mortgage payments over the life of a loan, ...

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the purpose of levy taxes.

Balloon Payment- a large [principal payment due at the end all at once on some loans.

Contract- binding legal agreement between two or more parties hat delineates the conditions for the exchange of property.

Deed- a legal document that formally conveys ownership of property from the seller to the buyer.

Equity- the value of property actually owned by the homeowner: purchase price plus depreciation, plus improvements, less mortgage and liens.

Federal National Mortgage Association (FNMA called Fannie Mae)- privately owned corporation created by congress that buys mortgage notes from local lenders and is responsible for the guidelines a majority of lenders use to qualify buyers.

Fixed Rate Mortgage- interest rate of this mortgage stays the same over the life of the loan.

Interest- the cost of borrowing money, usually expressed as a percentage over time.

Lien- a security claim on a property until debt is satisfied.

Points- one percent of the loans ...

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What To Know When Buying A Home. (2007, April 24). Retrieved April 25, 2024, from http://www.essayworld.com/essays/What-To-Know-When-Buying-Home/63837

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PAPER DETAILS

Added: 4/24/2007 08:31:36 AM
Category: Miscellaneous
Type: Premium Paper
Words: 972
Pages: 4

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