Real Estate 101
John L. Scott Market Center in Forest Grove has put together this little tutorial to help you with some unfamiliar words you will encounter during the purchase of you home.
Adjustable Rate Mortgage or ARM – This mortgage has a varying interest rate and payment.
Annual Percentage Rate or APR – the percentage you pay for the cost of the loan,
Balloon Mortgage – a short term mortgage with a lump sum due at the end of the term.
Closing – This is what you have been waiting for! It is the transfer of ownership from the seller to you according to the sales contract. This is when you will have to pay the…
Closing costs – They include title insurance, attorney and appraisal fees, recording fees and taxes.
Discount Points – A one-time payment by the borrower to the lender to get a lower interest rate. The use of these points is called a Buy Down.
Earnest money deposit – the deposit the buyer makes to show true intention to purchase.
Fixed Rate Mortgage – the interest rate remains the same for the life of the loan.
Title – the documentation of lawful ownership. Title Insurance is a policy that covers loss from any defects in the title. A Title Search looks for facts about the title. All this is taken care of by the Title Officer of the Title Company used in the purchase of property.
This is just a short list of terms, but Chris and Victoria Garfield, your real estate experts, will be there to help you navigate your way through the entire home buying and selling process.
John L. Scott Market Center Real Estate
1936 Pacific Ave.
Forest Grove, OR 97116