An employer-sponsored investment plan that allows individuals to set aside tax-deferred income for retirement or emergency purposes. 401(k) plans are provided by employers that are private corporations. 403(b) plans are provided by employers that are not for profit organizations.
Real Estate and Mortgage

Some administrators of 401(k)/403(b) plans allow for loans against the monies you have accumulated in these plans. Loans against 401K plans are an acceptable source of down payment for most types of loans.
Real Estate and Mortgage

A short history of a piece of land that lists any transfers in ownership, as well as any liabilities attached to it, such as mortgages.
Real Estate and Mortgage

A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender.
Real Estate and Mortgage

A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes.
Real Estate and Mortgage

The date the interest rate changes on an adjustable-rate mortgage (ARM).
Real Estate and Mortgage

A means by which one can legally take another's property without paying for it. The requirements for adversely possessing property vary between states, but usually include continuous and open use for a period of five or more years and paying taxes on the property in question.
Real Estate and Mortgage

A person authorized to act for and under the direction of another person when dealing with third parties. The person who appoints an agent is called the principal. An agent can enter into binding agreements on the principal's behalf and may even create liability for the principal if the agent causes harm while carrying out his or her duties. While the term ''Agent'' is not specific to the Real Estate industry, most Real Estate Salespeople, Brokers and REALTORS do act as agents when conducting business. An Agent is defined as anyone who represents another in a business transaction.
Real Estate and Mortgage

The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.
Real Estate and Mortgage

A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.
Real Estate and Mortgage

This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It works sort of like this, but not exactly, so only use this as a guideline: deduct the closing costs from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead of your actual loan amount. You will come up with a number close to the APR. Because you are using the same payment on a smaller amount, the APR is always higher than the actual note rate on your loan.
Real Estate and Mortgage

The form used to apply for a mortgage loan, containing information about a borrower's income, savings, assets, debts, and more.
Real Estate and Mortgage

A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.
Real Estate and Mortgage

An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property. Since an appraisal is based primarily on comparable sales, and the most recent sale is the one on the property in question, the appraisal usually comes out at the purchase price.
Real Estate and Mortgage

An individual qualified by education, training, and experience to estimate the value of real property and personal property. Although some appraisers work directly for mortgage lenders, most are independent.
Real Estate and Mortgage

The increase in the value of a property due to changes in market conditions, inflation, or other causes.
Real Estate and Mortgage

The valuation placed on property by a public tax assessor for purposes of taxation.
Real Estate and Mortgage

The placing of a value on property for the purpose of taxation.
Real Estate and Mortgage

A public official who establishes the value of a property for taxation purposes.
Real Estate and Mortgage

Items of value owned by an individual. Assets that can be quickly converted into cash are considered ''liquid assets''. These include bank accounts, stocks, bonds, mutual funds, and so on. Other assets include real estate, personal property, and debts owed to an individual by others.
Real Estate and Mortgage