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Definition
| An apartment building or a group of apartments owned by a corporation in which building's residents are the stockholders. |
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Definition
| A monthly fee paid by shareholders to the co-op corporation for paying property taxes and maintaining the grounds. |
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Definition
| A type of apartment building or apartment complex that allows for individual ownership of the apartment units but joint ownership of the apartment land, common areas, and facilities. |
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Definition
| The amount of money outside or not covered by mortgage funds that the buyer puts down on a home at the time of sale. It is the buyers equity or homeowners share. Lenders like to see a high down payment. |
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Term
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Definition
| An insurance that covers the lender if you default. This allows you to bring your down payment to as low as 5% for first homes and 10% on new homes after your first home. |
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Term
| Closing (settlement) costs |
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Definition
| Expenses associated with finalizing the transfer of ownership of the house. It can range anywhere from 1 to 3% of the cost of the house. It includes: 1) the loan application fee, 2) appraisal fee, and 3) other fees, such as the title search. |
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Term
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Definition
| An investigation of the public records to determine the legal ownership rights to property or a home. |
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Term
| PIT (principle, interest, taxes) or GDS (gross debt service) |
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Definition
| An acronym standing for the total of your monthly principle, interest, and taxes. |
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Term
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Definition
| A reserve account in which funds are deposited, generally each month, and accumulate over time until they are drawn out to pay taxes. |
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Definition
| A locked mortgage interest rate limit during the time of the construction of the home. This allows the buyer to be certain of their mortgage interest rate. |
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Term
| Independent (exclusive buyer-broker) |
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Definition
| a real estate agent hired by the prospective buyer who exclusively represents the homebuyer. Such brokers are obligated to get the buyer the best deal and, generally, are paid by splitting the commission with the sellers agent. |
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Term
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Definition
| A contract between the renter and the owner of the property that defines the monthly payment, required deposits, payment date, penalties for late payment, length of the lease, and renewal options, in addition to restrictions. |
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Term
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Definition
| A deposit on the home purchase to assure the seller that the buyer is serious about the house. |
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Definition
| The time at which the title is transferred and the seller is paid in full for the house. The buyer takes possession of the house. |
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Term
| Settlement/Closing statement |
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Definition
| A statement listing the funds required at closing, which should be furnished to the buyer by the attorney at closing for review. |
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Term
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Definition
| Someone who originates loans, and sells them to other investors, such as pension funds and insurance companies. There is no real advantage or disadvantage to using them. |
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Term
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Definition
| A loan from a bank or credit union that is secured by the property being purchased. |
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Term
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Definition
| A mortgage loan made by a traditional lende, but insured by either CMHC or GE-mortgage insurance. |
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Term
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Definition
| A mortgage that can be transferred to a new buyer, who simply assumes or takes over the mortgage obligations. Such a mortgage saves the buyer the cost of obtaining a new mortgage loan plus, the new buyer can assume the mortgage at the lower rate (this is advantageous if the rates have gone up). |
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Term
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Definition
| A clause in a mortgage allowing the borrower to make early cash payments that are applied toward the principle. Banks usually allow an annual prepayment of 10%. |
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Term
| Initial rate (teaser rate) |
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Definition
| The initial rate charged on a mortgage. This rate holds only for a short period, generally between 3 and 12 months, before being adjusted upward to market levels. |
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Term
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Definition
| The period that applies to the specific mortgage interest rate. After this period the mortgage must be renewed at market rates applicable at the time of renewal. |
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