RE Terms

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Because a regular part of our business is helping to keep people educated, whether it be the consumer or the realtor, we thought it might be of use to include a glossary of often used terms and their definitions. If there's something you're looking for and can't find it below, please feel free to contact us directly.

REAL ESTATE TERMS

AMORTIZATION

A schedule for repayment of a loan, including principal and interest, when paid by regular installment payments. Mortgage loans are typically amortized over 15 to 30 years. APR (Annual Percentage Rate) The total annual cost of a loan stated as a percentage of the loan amount. The APR includes the base interest rate, primary mortgage insurance and loan origination fee (points). Use the APR to compare various loan programs, as all lenders are required to use the same guidel ines in determining APR.

ASSESSED VALUE

Value placed on a property by the tax assessor for property tax purposes.

ASSUMABLE MORTGAGE

A mortgage that can be taken over or assumed by the buyer when a property is sold.

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LENDER CLOSING COST DEFINITIONS

ADMINISTRATION FEE

Often this fee will be charged in lieu of an underwriting and/or document preparation fee.

AGGREGATE ADJUSTMENT

Federal controls which increase or decrease impounds collected to fall within federally mandated limits.

APPLICATION FEE

Often non-refundable, this fee is charged by the lender to cover a portion of the cost of processing a loan application.

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TITLE CLOSING COST DEFINITIONS

COUNTY AND/OR CITY DOCUMENT TRANSFER TAX

A tax on the sale of real property based on the sale price of property being transferred.

OVERNIGHT PAYOFF

Next day transport of funds to pay an existing obligation done to avoid additional interest and possible late charges.

LENDER ENDORSEMENTS

Riders attached to lender’s policies expanding the coverage afforded by the policy. For example, listing type of improvement or guaranteeing against enforcement of an easement.

LENDER’S TITLE POLICY

A title insurance policy insuring a lender against loss caused by invalid title in the borrower or loss of priority of the deed of trust.

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ESCROW CLOSING COST DEFINITIONS

DOCUMENT PREPARATION FEE

Fee charged for preparation of all necessary State, Federal and transfer documents (ie. Deeds, Affidavits, Change of Ownership, etc.).

ESCROW FEE

Fee charged for settlement services on behalf of the buyer and seller.

LOAN TIE IN FEE

Fee charged for liability incurred and time involved in providing documentation, satisfying lender conditions and coordinating with lender.

LOAN/E DOC PROCESSING FEE

Fee charged for liablity incurred for electronic delivery of Buyer's loan documents, time involved providing copies of loan documents to Buyer, providing documentation, satisying lender conditions and coordinating with lender.

PROCESS DEMAND STATEMENT(S)

Fee charged for liability incurred and time involved in obtaining demand statement(s) and satisfying the lien holder and title company requirements in connection with the payoff of existing liens.