The more real estate terms you understand, the more comfortable you will be in your home buying process. This is especially true for financial vocabulary related to real estate transactions.
To help familiarize you with some of these important concepts, here is a quick guide to financial real estate terms:
A fixed rate mortgage is one of the many types of mortgage loan available to prospective buyers. A fixed rate mortgage is a loan that maintains the same interest rate throughout the entire term of the loan.
This means the interest rate won’t fluctuate with market conditions, and won’t increase or decrease over time. A fixed rate mortgage is beneficial for homeowners who want to know exactly how much their monthly mortgage payment will be.
The down payment is the amount of money paid upfront to a mortgage lender to buy a home. The amount of the down payment can affect things like interest rates and the total amount of the mortgage loan.
For instance, a large down payment means you borrow less money, and therefore pay more upfront rather than more overtime in interest.
Fair market value refers to the variable value of a property based on market conditions. A real estate agent can help you find the fair market value of a home by conducting a comparative analysis of similar properties in the same area.
Some of the factors that can impact market value include curb appeal, square footage, energy efficiency and overall condition of the property.
These are just a few examples of real estate terms that can help you in a real estate transaction. By learning the language real estate agents use, the more confident you will feel on the search for your dream home.
Judy Gibbons is a highly accomplished Realtor licensed in Illinois, Michigan, and Florida. With an impressive list of accolades and a wealth of experience, she has become a prominent figure in the Chicagoland real estate industry.
As a global real estate advisor, Judy is known for her ability to seamlessly connect extraordinary homes with extraordinary lives. She possesses an extensive knowledge of the market, and is committed to providing world-class service to her clients. Gibbons can assist you whether it is with luxury real estate transactions, investment properties, short term rentals, or helping first time buyer clients with tall heir real estate needs.
With over 20+ years of experience, give Judy a call today and discover the difference of working with a real estate advisor who is dedicated to helping you achieve your real estate dreams, wherever they may lead you.
Designations/Licenses: Certified Distressed Property Expert, Broker, GREEN
Town Coverage: Chicago, Illinois, Arlington Heights, Illinois, Barrington, Illinois, North Barrington, Illinois
