Buyers are known to face some uncommon terms that keep coming up when dealing with real estate financing. I’ll go over some of those terms that may come up when next you’re dealing with real estate financing.
- Interest: A charge paid for borrowing money.
- APR (Annual Percentage Rate): The cost of credit expressed as an annual rate. It must be calculated by using a formula set by federal law and disclosed to the borrower to aid in comparing different credit plans.
- Points: This is a form of prepaid interest where one point worth 1% of the loan. A borrower might be offered points by the lender to discount the loan interest.
- Clauses: Clauses are known to include in mortgages these days which create some additional rules for loans.
- Mortgage: The term of agreement with your financial institution
CLICK HERE for the full list of our mortgage glossary of terms.
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