Monday, October 22, 2018
 Buying  |  Selling  |  Financing  |  Relocating  |  Homeowning  |  First-Time Buyer 

Refer A Friend


Randi F. Rainmaker
CLHMS, GRI, ABR, CCIM, ePro, EcoBroker
Gooder Group
2724 Dorr Ave, Ste 103
Fairfax, Virginia 22031

Office: 703-698-7750
E-mail Me
Visit My Website
Hottest New Listings!
Exclusively ZIP 20902
Search All Homes
Featured Properties






FREE e-REPORTS
Improve Your Chances Of Getting The Right Loan
Six Tips For Getting The Best Loan
Put Your Home's Equity To Work With Six Savvy Strategies



Select FAQ of Interest
 
e-FAQs
Everything You Need To Know About Real Estate

Can you give me some help with understanding financing terms?

Books Sure! Here are some basic financing terms all home buyers should know.
  • Adjustable Rate Mortgage (ARM):

  • Financing with, typically, a lower initial interest rate for a preset time. The rate and payments adjust at predetermined periods according to an agreed-upon index.
  • Contingency:

  • A condition on the sale put into the contract by either the buyer or seller to protect against specific eventualities. Common contingencies are that the buyer obtain financing or sell the current home, or that the seller has a home inspection done or repair certain items. Contingencies can be removed by an addendum to the contract, or they can expire if a time limit is specified in the contract.
  • Fixed-Rate Mortgage:

  • Financing with a stable interest rate for the life of the loan, typically a 15-year or 30-year term.
  • VA:

  • The Department of Veteran Affairs, which guarantees loans, available exclusively to veterans, for approved lenders to limit losses.
  • Earnest Money:

  • A cash deposit buyers make when they sign a contract to buy a house. It makes the contract binding and signifies the intention of the buyer to complete the purchase. At closing, the earnest money becomes part of the down payment. If the buyer defaults without a good reason, as spelled out in the contract, the earnest money becomes payment for damages suffered by sellers and their agents. The deposit is typically several thousand dollars, but usually less than 10% of the purchase price. If the buyer's contract is not accepted by the seller, the money is returned to the buyer.
  • FHA:

  • The Federal Housing Administration, which insures home mortgage loans made by private lenders.
  • PITI:

  • An abbreviation of Principal, Interest, Taxes and Insurance – the typical components of a buyer's monthly payment. Condominium or homeowner association fees are not included.
  • Points (also called Discount Points):

  • Part of the cost of a mortgage loan and a portion of the loan interest paid up front in exchange for a lower interest rate. One point is equal to 1% of the loan. Often, the origination fee is 1% of the loan and is counted as one point.
  • Two-Step Mortgage:

  • A fixed-payment loan with a guaranteed low interest rate for a period shorter than 30 years, typically 3 to 10 years, and a conditional right to refinance at a higher rate for the remainder of the term.
For more answers to questions about real estate terms and procedures, call or e-mail us. We can help you get through the home buying experience with a clear head.
More Help For Financing


Homeowners



Tip of Week



Quote of Week



Newsletter

Search all the homes for sale in our area.


Become a VIP buyer or seller. Beat your competition to the best properties in today's market. No cost, no obligation.
FREE Electronic Real Estate Reports:
These reports can help save you thousands, delivered free to your inbox.
MAGIC Improve Your Chances Of Getting The Right Loan
MORE FOR LESS Six Tips For Getting The Best Loan
IDLE EQUITY Put Your Home's Equity To Work With Six Savvy Strategies
MORTGAGE Insider's Guide To The Latest Home-Loan Opportunities
SHELTER Six Little-Known Ways To Help Relatives Finance a Home
QUALIFIED How Much House Can You Really Afford?
OPTIONS Ten Savvy Ways To Pay For A HomeToday
LOWER RATE Seven Smart Ways To Reduce Your Mortgage
CREDIT REPAIR How To Move From Rejection To Approval
WHY REFI Five Great Reasons To Refinance Today
 
       
Home  |  Information Center  |  Ask Us
Buying   |  Selling   |  Financing   |  Relocating   |  Homeowning   |  First-Time Buyer
Copyright 2018, Gooder Group.
Absolutely no part of this page may be reproduced or distributed without written permission.
All rights reserved by Gooder Group, Gaithersburg, MD, (703) 698-7750.