Lynn Rand | Mattapoisett Real Estate, Rochester Real Estate, Marion Real Estate


If you’re planning on buying a home in the near future and are confused about many of the terms associated with mortgages, you’re not alone. Real estate is its own industry with its own set of processes, terms, and acronyms. If you’re new to the home buying process, there can be somewhat of a learning curve to understand what each of these terms means.

Since buying a home is such a huge investment and life decision, there’s a lot of pressure on home buyers to make sure they get everything right. This makes for a stressful situation for buyers who don’t feel like they understand the terminology of things like mortgages, appraisals, credit reports, and other factors that contribute to the home buying process.

To alleviate some of those concerns and to make the home buying process run more smoothly, we’ve compiled a list of the most common, and most commonly confused, real estate words, terms, and acronyms. That way, when you’re talking things over with your real estate agent or your mortgage lender, you’ll be confident that you understand exactly what’s being considered.


Read on for our real estate terminology glossary.

  • Adjustable rate mortgage (ARM) - This is one type of home loan. Mortgage rates with this type of loan fluctuate throughout the repayment term of the loan. The fluctuation is based on a market indicator.

  • Fixed rate mortgage (FRM) - Another type of home loan, a fixed rate mortgage has a rate which does not fluctuate, remaining constant for the life of the term, most commonly 15 or 30 years.

  • Appraisal - An appraisal is the determination of the value of a property. Appraisals are used when purchasing and selling a home, as well as when refinancing a home loan. Appraisers are required to be licensed or certified in each state and are usually paid for by the lender.

  • Appreciation - An increase in a property’s value, most commonly due to market inflation, or the general increase in home prices over time.

  • Depreciation - A decrease in a property’s value, due to either market deflation (uncommon) or the wear and tear on a home that comes with age.

  • Closing costs - The costs and fees that a buyer is responsible for when purchasing a home or taking out a mortgage. These include underwriting fees, inspections, appraisals, transfer taxes, and more. Closing costs typically range from 2% to 5% of the total loan amount.

  • Contingency - Home purchases have contracts to protect the interest of the buyer, seller, and lender. Contingencies are provisions designed to protect the buyer or lender should something occur in the time leading up to closing on (or purchasing) the home. One common contingency is the buyer’s right to have a final inspection of the home before closing to ensure no new issues with the home have occurred.

  • Private mortgage insurance (PMI) - Buyers who cannot afford a down payment of %20 typically are required to take out a private mortgage insurance policy. This policy protects the lender should the borrower default (fail to repay or meet the conditions of their loan).





1485 Somerset Ave, Taunton, MA 02780

Rental

$620
Price

3
Rooms
1
Beds
1
Baths
Cozy, clean, one bedroom apartment on the first floor in a three family residence. Located in a great neighborhood and Ideal for one person. The unit features new kitchen and living room floors, new appliances and upgraded bathroom. Utilization of common area deck and yard. Month-to-month, first month and security needed to move in as well as credit and background check. Tenant pays utilities. No smoking. No pets. Available April 1. IF DRIVING BY, DO NOT ENTER THE DRIVEWAY.
Open House
No scheduled Open Houses




This Single-Family in West Bridgewater, MA recently sold for $295,000. This Cape style home was sold by Lynn Rand - RE/MAX Welcome Home.


75 Forest St, West Bridgewater, MA 02379

Single-Family

$319,900
Price
$295,000
Sale Price

7
Rooms
3
Beds
1/1
Full/Half Baths
Classic Country Cape with a one car garage attached-in ground pool-1800 sq.feet of living space. Four bedrooms-two up and two down-fire placed living room-hardwood floors. Conveniently located near Rt,24 on a dead end street. Needs TLC, want pass FHA.--- Property being sold "AS IS", WHERE IS" Seller makes no warranties or representations. All inspections are buyer's responsibility. Passed Title V Inspection in hand for a 3 bedroom septic. Buyer/Buyer Agent to do due diligence about property info.

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This Single-Family in Mansfield, MA recently sold for $392,500. This Gambrel style home was sold by Lynn Rand - RE/MAX Welcome Home.


24 Juniper Drive, Mansfield, MA 02048

Single-Family

$399,900
Price
$392,500
Sale Price

7
Rooms
4
Beds
2
Baths
Buy a house in Mansfield MA! Beautiful neighborhood setting and conveniently located just minutes to commuter rail, major highways and downtown. Located 40 miles south of Boston and 30 miles north of Providence, RI. Mansfield offers an outstanding school system and a great environment. Large fenced in yard, ideal for family gatherings, pets, pool or perhaps a garage! 2 full bathrooms partially remodeled in the past year, one with walk in shower and other a tub. Roof was replaced in 2016 and bulkhead in 2018. New kitchen floor. Spacious living room with fireplace. 3 good size bedrooms on the 2nd floor. Stainless Steel refrigerator and dishwasher. New whole house box fan. 4th bedroom currently being used as a Den but could be an ideal office space. Partially finished basement. Being Sold "AS IS". Needs TLC. Bring your thoughts and ideas on how you could make this a fabulous home for you and your family. Come by and take a look!

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When you read the newspaper or listen to the news, it is likely that you come across economic indicators of your local real estate market even when you don’t know that they are. Most people do not pay attention to these indicators because they do not affect them directly. However, it is essential that you have a clear understanding of these indicators before investing in real estate or any other business. 

These economic indicators will help you understand the housing market better. The real gauges to keep an eye on are the level of sales, home prices, the number of ongoing construction, mortgage rates among others. To understand the future of the housing market, you need to understand the key economic indicators. 

Home construction

There is an increase in the rate of home constructions this year. With the fall of mortgage rates, experts expect that the prices will drop further this year. This price change is good news if you are looking to buy a home this year. 

Mortgage rates

After about ten years of unstable mortgage rates, the decision of the Federal Reserve to adjust its policy has given room for mortgage rates to drop. A better understanding of the nuances of mortgage rates will help you to know when to invest. You can also speak to your bank to ask what their projections are for mortgage rates.

Home sales volume 

There is a reduction in home sales when the price rises. That is, the sales volume tends to reduce whenever the prices of homes go up. Based on the report from Zillow, when the housing market is doing great, the economy of the country soars significantly. On the other hand, when the market goes down, the economy will decline with it. 

The inventory on the market

The number of homes available for in sale in spring of last year was fewer than now. Presently, there is better inventory that is preferable to what happened at the beginning of last year.

The economic indicators mentioned above will keep you informed on the recent trends in the housing market. However, you need to be aware of some other critical factors to be fully aware of what is happening in the real estate market in the country. These factors include buyers and sellers' preferences, student debt, employment rates, household-formation among others.

Understanding market indicators will help you choose the best time for you to invest in real estate. Consult a real estate agent for the latest reports in your area.




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