Real Estate Vocabulary

Navigating the wide world of real estate terminology often feels like deciphering a complex language filled with unfamiliar jargon. But understanding industry terms is essential for making informed decisions, and a knowledgeable agent can help you make sense of it all. Here are a few words and phrases you'll want to know.

Annual Percentage Rate (APR): The cost of a loan or financing option on an annual basis. It includes not only the interest rate but also factors in points, broker fees and specific credit charges mandated for borrowers.

Buydown: An interest subsidy from a property developer or another third party that decreases a borrower's monthly payments, usually during the initial 3 to 5 years of the loan.

Fair Market Value: The estimated worth of a property under circumstances where both the buyer and seller have adequate information and are willing to complete a transaction.

Pre-Approval: A lender's estimate of the amount of money a potential borrower is eligible for when seeking a mortgage loan. This process usually involves examining an applicant's credit history and confirming income and assets.