| APR – Annual Percentage Rate |
Total yearly cost of a mortgage loan, stated as a percentage of the loan amount; including basic interest rate, basic mortgage insurance and loan originating costs (points). |
| Closing: |
When the purchase is finalized; buyer signs the loan and closing costs are paid. |
| Deposit: |
Cash money paid to seller upon signing a formal purchasing agreement. |
| Deed: |
Public document authorized by a Notary Public who attests that the document was granted by the parties, under the conditions stated therein and which validates it for inscription in the Registry. Its object may vary, but those referring to real estate operations (purchasing deed, mortgage deed) are very customary, since this sort of operations normally tend to be inscribed in the Property Registry, and private documents do not have access to said Registry. |
| Mortgage: |
A burden or obligation on a property or house to insure payment of a loan and it is paid through installments throughout a fixed period of time. The mortgage guarantees your promise to pay off the money they lent you to purchase your house. There are many types of mortgages. Each one has advantages and disadvantages. Make sure to choose the right mortgage for you, your future plans and your financial situation. |
| FHA: |
Federal Housing Administration; created in 1934 to foster opportunities for all north Americans to own a house; helping buyers by granting mortgage insurances to creditors to cover for most of the losses that may arise when a borrower declares that he or she cannot make payments. This then encourages creditors to grant loans to borrowers who do not meet the requisites to be eligible for conventional mortgages. |
| Credit Report: |
A registry that lists all current and past debts and the payment deadlines. It is useful to show a person’s credit history. |
| Delinquency: |
A borrower’s inability to make the monthly payments on the mortgage under a loan agreement. |
| Loan: |
Money lent, generally returned with interests. |
| Refinancing: |
Cancelling a loan by opening another one; generally done to get better loan terms (like, a lower interest rate). |
| Interest Rate: |
Amount of interest collected on monthly installment of a loan; generally stated as a percentage. |
| Appraisal: |
A document that states an estimated market value on the property. Moneylenders generally request appraisals to make sure that the total amount of mortgage loan isn’t higher than the value of the property. |
| Appraiser: |
A qualified person who uses his or her experience and knowledge to carry out the appraisal. |
| Market Value: |
The hypothetical price to be freely agreed on by the seller and the buyer, carefully and with a complete understanding of the situation. |
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