Tel.
(949) 481 9318
DRE number 01781703
Garry McDonald
REALTOR®
“ Your one stop Real Estate Resource ”
in South Orange County, CA
| Terms You will Want to Know |
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Adjustable Rate Mortgage ( ARM ) : A mortgage with an interest rate that changes over time in line with movements in the index. ARMs are also referred to as AMLs ( a djustable mortgage loans ) or VRMs ( v ariable rate mortgages) . Adjustment Period: The length of time between interest rate changes on an ARM. For example, a loan with an adjustment period of one year is called a one-year ARM which means that the interest rate can change once a year. Amortization: Repayment of a loan In equal installments of principal and interest, rather than interest-only payments. Amortized Loan: A loan that is completely paid off, interest and principal, by a series of regular payments that are equal or nearly equal. Also called a Level Payments Loan. Annual Percentage Rate ( APR ) : The total finance charge ( interest, loan fees, points ) expressed as a percentage of the loan amount. Appraisal: The act or process of estimating values of real estate or any interest therein. Appreciation: An increase in value of real estate. Assumption of Mortgage: A buyer ’ s agreement to assume the liability under an existing note that is secured by a mortgage or deed of trust. The lender must approve the buyer in order to the original borrower ( usually the seller ) from liability. Balloon Payment: A lump sum principal payment due at the end of some mortgages or other long-term loans. Cap: The limit on how much an interest rate or monthly payment can change, either at each adjustment over the life of the mortgage. CC&R ’ s: Covenants, Conditions and Restrictions. A document that controls the use, requirements and restrictions of a property. Certificate of Reasonable Value (CRV ) : A document that establishes the maximum value and loan amount for a VA guaranteed mortgage. Closing: The final settlement of a real estate transaction between buyer and seller. Closing Statement: The financial disclosure statement that accounts for all of the funds received and expected at the closing, including deposits for taxes, hazard insurance, and mortgage insurance. Condominium: A form of real estate ownership where the owner receives title to a particular unit and has a proportionate joint ownership of common area of the structure and the land interest. The unit itself is generally a separately owned space whose interior surfaces (walls, floors and ceilings ) serve as its boundaries.
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34102 Ruby Lantern #C
Dana Point CA 92629
