REAL ESTATE TERMS GLOSSARY
||Some adjustable rate mortgages allow the interest rate to fluctuate independently of a required minimum payment. If a borrower makes the minimum payment it may not cover all of the interest that would normally be due at the current interest rate. In essence, the borrower is deferring the interest payment, which is why this is called deferred interest. The deferred interest is added to the balance of the loan and the loan balance grows larger instead of smaller, which is called negative amortization.
|no cash-out refinance
||A refinance transaction which is not intended to put cash in the hand of the borrower. Instead, the new balance is caculated to cover the balance due on the current loan and any costs associated with obtaining the new mortgage. Often referred to as a rate and term refinance.
||Many lenders offer loans that you can obtain at no cost. You should inquire whether this means there are no lender costs associated with the loan, or if it also covers the other costs you would normally have in a purchase or refinance transactions, such as title insurance, escrow fees, settlement fees, appraisal, recording fees, notary fees, and others. These are fees and costs which may be associated with buying a home or obtaining a loan, but not charged directly by the lender. Keep in mind that, like a no-point loan, the interest rate will be higher than if you obtain a loan that has costs associated with it.
||A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.
||The interest rate stated on a mortgage note.
|notice of default
||A formal written notice to a borrower that a default has occurred and that legal action may be taken.
Certified Negotiation Expert
As a bay area native I pride myself on my detailed knowledge of the San Francisco bay and it's widely diverse communities. Having left a highly succesful high tech career in 2001 to pursue a more "friendly" people focused industry such as real estate. I bring the same energetic work ethic and real estate has become my passion which is shown in my highly successful real estate career
RE/MAX - America's #1 Real Estate Agency - By Far!
Experience, Dependability and Impecable Client Services is the difference!
Robin Brooks - REMAX Accord - 517 Sycamore Valley Road West - Danville, CA 94526 - (925) 212-2446