real estate crossword A-G

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Across
  1. 3. Items of value owned by an individual. "?" that can be quickly converted into cash are considered "liquid assets." These include bank accounts, stocks, bonds, mutual funds, and so on.
  2. 4. A mortgage that can be assumed by the buyer when a home is sold. Usually, the borrower must "qualify" in order to assume the loan.
  3. 5. The term applied when a buyer assumes the seller's mortgage.
  4. 7. Recent sales of similar properties in nearby areas and used to help determine the market value of a property. Also referred to as "comps."
  5. 8. The placing of a value on property for the purpose of taxation.
  6. 9. An appraiser's estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.
  7. 10. IAn additional individual who is both obligated on the loan and is on title to the property.
  8. 11. Usually refers to a fixed rate mortgage where the interest rate is "bought down" for a temporary period, usually one to three years. After that time and for the remainder of the term, the borrower's payment is calculated at the note rate. In order to buy down the initial rate for the temporary payment, a lump sum is paid and held in an account used to supplement the borrower's monthly payment. These funds usually come from the seller (or some other source) as a financial incentive to induce someone to buy their property. A "lender funded buydown" is when the lender pays the initial lump sum. They can accomplish this because the note rate on the loan (after the buydown adjustments) will be higher than the current market rate. One reason for doing this is because the borrower may get to "qualify" at the start rate and can qualify for a higher loan amount. Another reason is that a borrower may expect his earnings to go up substantially in the near future, but wants a lower payment right now.
  9. 12. A decline in the value of property; the opposite of appreciation. Depreciation is also an accounting term which shows the declining monetary value of an asset and is used as an expense to reduce taxable income. Since this is not a true expense where money is actually paid, lenders will add back depreciation expense for self-employed borrowers and count it as income.
  10. 13. An individual qualified by education, training, and experience to estimate the value of real property and personal property.
  11. 14. Short for "deed in lieu of foreclosure," this conveys title to the lender when the borrower is in default and wants to avoid foreclosure. The lender may or may not cease foreclosure activities if a borrower asks to provide a deed-in-lieu. Regardless of whether the lender accepts the deed-in-lieu, the avoidance and non-repayment of debt will most likely show on a credit history. What a deed-in-lieu may prevent is having the documents preparatory to a foreclosure being recorded and become a matter of public record.
  12. 15. A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD). Created by Congress on September 1, 1968, GNMA performs the same role as Fannie Mae and Freddie Mac in providing funds to lenders for making home loans. The difference is that Ginnie Mae provides funds for government loans (FHA and VA)
  13. 16. The Federal National Mortgage Association, which is a congressionally chartered, shareholder-owned company that is the nation's largest supplier of home mortgage funds. For a discussion of the roles of Fannie Mae, Freddie Mac (FHLMC), and Ginnie Mae (GNMA), see the Library.
  14. 17. A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens.
  15. 18. separated into what are called "non-recurring closing costs" and "pre-paid items." Non-recurring closing costs are any items which are paid just once as a result of buying the property or obtaining a loan. "Pre-paids" are items which recur over time, such as property taxes and homeowners insurance. A lender makes an attempt to estimate the amount of non-recurring closing costs and prepaid items on the Good Faith Estimate which they must issue to the borrower within three days of receiving a home loan application.
  16. 20. A right of way giving persons other than the owner access to or over a property.
  17. 22. An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the earnest money deposit is put into escrow until delivered to the seller when the transaction is closed.
  18. 28. A mortgage that is insured by the Federal Housing Administration (FHA). Along with VA loans, an FHA loan will often be referred to as a government loan.
  19. 31. The use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses as they become due.
  20. 32. A written document that transfers title to personal property.
  21. 39. The report on the title of a property from the public records or an abstract of the title.
  22. 43. When a borrower refinances his mortgage at a higher amount than the current loan balance with the intention of pulling out money for personal use, it is referred to as a "cash out refinance." (top)
  23. 45. An agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date. (top)
  24. 47. Equal Credit Opportunity Act A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.
  25. 48. A mortgage in which the interest changes periodically, according to corresponding fluctuations in an index. All ARMs are tied to indexes. adjustable rate mortgage
  26. 50. A report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness.
  27. 51. An amount owed to another.
  28. 52. The lawful expulsion of an occupant from real property.
  29. 55. A consumer protection law that regulates the disclosure of consumer credit reports by consumer/credit reporting agencies and establishes procedures for correcting mistakes on one's credit record.
  30. 57. The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
  31. 58. An unconditional, unlimited estate of inheritance that represents the greatest estate and most extensive interest in land that can be enjoyed. It is of perpetual duration. When the real estate is in a condominium project, the unit owner is the exclusive owner only of the air space within his or her portion of the building (the unit) and is an owner in common with respect to the land and other common portions of the property.
  32. 59. The person to whom an interest in real property is conveyed.
  33. 60. A person to whom money is owed.
  34. 61. Once each year your lender will perform an "?" to make sure they are collecting the correct amount of money for the anticipated expenditures.
  35. 62. A public official who establishes the value of a property for taxation purposes.
  36. 63. The ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death.
  37. 66. Failure to make mortgage payments when mortgage payments are due. For most mortgages, payments are due on the first day of the month. Even though they may not charge a "late fee" for a number of days, the payment is still considered to be late and the loan delinquent. When a loan payment is more than 30 days late, most lenders report the late payment to one or more credit bureaus.
  38. 67. A mortgage loan that requires the remaining principal balance be paid at a specific point in time. For example, a loan may be amortized as if it would be paid over a thirty year period, but requires that at the end of the tenth year the entire remaining balance must be paid.
  39. 69. Changing the ownership of an existing building (usually a rental project) to the condominium form of ownership.
  40. 70. In the mortgage industry, this term is usually used in only in reference to government loans, meaning FHA and VA loans. Discount points refer to any "points" paid in addition to the one percent loan origination fee. A "point" is one percent of the loan amount.
  41. 71. A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.
  42. 73. Once you close your purchase transaction, you may have an "?" or impound account with your lender. This means the amount you pay each month includes an amount above what would be required if you were only paying your principal and interest. The extra money is held in your impound account (escrow account) for the payment of items like property taxes and homeowner's insurance when they come due. The lender pays them with your money instead of you paying them yourself.
  43. 74. Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas.
  44. 78. The increase in the value of a property due to changes in market conditions, inflation, or other causes.
  45. 80. Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.
  46. 81. The legal document conveying title to a property.
  47. 83. Personal property that becomes real property when attached in a permanent manner to real estate.
  48. 86. A short-term, interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses.
  49. 88. A clause in your mortgage which allows the lender to demand payment of the outstanding loan balance for various reasons. The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender.
  50. 92. An improvement that intrudes illegally on another's property.
  51. 94. This has different meanings in different states. In some states a real estate transaction is not consider "closed" until the documents record at the local recorders office. In others, the "closing" is a meeting where all of the documents are signed and money changes hands.
  52. 95. The final lump sum payment that is due at the termination of a balloon mortgage.
  53. 96. Not used much anymore, bridge loans are obtained by those who have not yet sold their previous property, but must close on a purchase property.broker a company or individual that does not lend the money for the loans themselves, but broker loans to larger lenders or investors. anyone who acts as an agent, bringing two parties together for any type of transaction and earns a fee for doing so.
  54. 97. The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.
  55. 98. Usually refers to the daily buying and selling of thirty year treasury bonds. Lenders follow this market intensely because as the yields of bonds go up and down, fixed rate mortgages do approximately the same thing. The same factors that affect the Treasury Bond market also affect mortgage rates at the same time. That is why rates change daily, and in a volatile market can and do change during the day as well.
  56. 99. A person named in a will to administer an estate. The court will appoint an administrator if no executor is named. "Executrix" is the feminine form. (top)
  57. 100. A mortgage in which you make payments every two weeks instead of once a month. The basic result is that instead of making twelve monthly payments during the year, you make thirteen.
  58. 101. Most salespeople earn commissions for the work that they do and there are many sales professionals involved in each transaction, including Realtors, loan officers, title representatives, attorneys, escrow representative, and representatives for pest companies, home warranty companies, home inspection companies, insurance agents, and more. The commissions are paid out of the charges paid by the seller or buyer in the purchase transaction. Realtors generally earn the largest commissions, followed by lenders, then the others.(top)
Down
  1. 1. A title that is free of liens or legal questions as to ownership of the property.
  2. 2. A condition that must be met before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.
  3. 3. When ownership of your mortgage is transferred from one company or individual to another, it is called an assignment.
  4. 6. Any conditions revealed by a title search that adversely affect the title to real estate. Usually clouds on title cannot be removed except by deed, release, or court action.
  5. 7. A record of an individual's repayment of debt. Credit histories are reviewed my mortgage lenders as one of the underwriting criteria in determining credit risk.
  6. 10. In a home loan, the property is the collateral. The borrower risks losing the property if the loan is not repaid according to the terms of the mortgage or deed of trust.
  7. 19. cost of funds index One of the indexes that is used to determine interest rate changes for certain adjustable-rate mortgages. It represents the weighted-average cost of savings, borrowings, and advances of the financial institutions such as banks and savings & loans, in the 11th District of the Federal Home Loan Bank.
  8. 21. certificate of deposit index One of the indexes used for determining interest rate changes on some adjustable rate mortgages. It is an average of what banks are paying on certificates of deposit. (top)
  9. 23. An analysis of the transfers of title to a piece of property over the years.
  10. 24. An organization that gathers, records, updates, and stores financial and public records information about the payment records of individuals who are being considered for credit.
  11. 25. The valuation placed on property by a public tax assessor for purposes of taxation.
  12. 26. Refers to home loans other than government loans (VA and FHA).
  13. 27. The right of a government to take private property for public use upon payment of its fair market value. Eminent domain is the basis for condemnation proceedings.
  14. 29. The form used to apply for a mortgage loan, containing information about a borrower's income, savings, assets, debts, and more.
  15. 30. A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time.
  16. 33. The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.
  17. 34. A mortgage that is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Mortgages that are not government loans are classified as conventional loans.
  18. 35. A lender's agreement to make a loan to a specific borrower on a specific property.
  19. 36. Those portions of a building, land, and amenities owned (or managed) by a planned unit development (PUD) or condominium project's homeowners' association (or a cooperative project's cooperative corporation) that are used by all of the unit owners, who share in the common expenses of their operation and maintenance. Common areas include swimming pools, tennis courts, and other recreational facilities, as well as common corridors of buildings, parking areas, means of ingress and egress, etc.
  20. 37. An oral or written agreement to do or not to do a certain thing.
  21. 38. In some areas they are called Homeowners Association Fees. They are charges paid to the Homeowners Association by the owners of the individual units in a condominium or planned unit development (PUD) and are generally used to maintain the property and common areas. (top)
  22. 40. A mortgage in which the interest rate does not change during the entire term of the loan.
  23. 41. An adjustable-rate mortgage that allows the borrower to change the ARM to a fixed-rate mortgage within a specific time.
  24. 42. The mortgage that is in first place among any loans recorded against a property. Usually refers to the date in which loans are recorded, but there are exceptions.
  25. 43. When a borrower falls behind, the lender contacts them in an effort to bring the loan current. The loan goes to "collection." As part of the collection effort, the lender must mail and record certain documents in case they are eventually required to foreclose on the property.
  26. 44. A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.
  27. 46. A provision in a mortgage that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the mortgage.
  28. 49. Failure to make the mortgage payment within a specified period of time. For first mortgages or first trust deeds, if a payment has still not been made within 30 days of the due date, the loan is considered to be in default.
  29. 53. The person conveying an interest in real property.
  30. 54. The greatest possible interest a person can have in real estate.
  31. 56. A deposit made by the potential home buyer to show that he or she is serious about buying the house.
  32. 64. The highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept.
  33. 65. A type of multiple ownership in which the residents of a multiunit housing complex own shares in the cooperative corporation that owns the property, giving each resident the right to occupy a specific apartment or unit.
  34. 68. In some states, especially the southwest, property acquired by a married couple during their marriage is considered to be owned jointly, except under special circumstances. This is an outgrowth of the Spanish and Mexican heritage of the area.
  35. 72. An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property.
  36. 75. Some states, like California, do not record mortgages. Instead, they record a deed of trust which is essentially the same thing.
  37. 76. The date the interest rate changes on an adjustable-rate mortgage.
  38. 77. A condominium project that has rental or registration desks, short-term occupancy, food and telephone services, and daily cleaning services and that is operated as a commercial hotel even though the units are individually owned. These are often found in resort areas like Hawaii.
  39. 79. An unwritten body of law based on general custom in England and used to an extent in some states.
  40. 82. A sum of money given in advance of a larger amount being expected in the future. Often called in real estate as an "earnest money deposit."
  41. 84. A type of ownership in real property where all of the owners own the property, common areas and buildings together, with the exception of the interior of the unit to which they have title. Often mistakenly referred to as a type of construction or development, it actually refers to the type of ownership.
  42. 85. individual or individuals can restructure or relieve themselves of debts and liabilities. Bankruptcies are of various types, but the most common for an individual seem to be a "Chapter 7 No Asset" bankruptcy which relieves the borrower of most types of debts. A borrower cannot usually qualify for an "A" paper loan for a period of two years after the bankruptcy has been discharged and requires the re-establishment of an ability to repay debt.
  43. 87. An agency of the U.S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting but does not lend money or plan or construct housing. (top)
  44. 89. A time deposit held in a bank which pays a certain amount of interest to the depositor. (top)
  45. 90. Adjustable Rate Mortgages have fluctuating interest rates, but those fluctuations are usually limited to a certain amount. Those limitations may apply to how much the loan may adjust over a six month period, an annual period, and over the life of the loan, and are referred to as "caps." Some ARMs, although they may have a life cap, allow the interest rate to fluctuate freely, but require a certain minimum payment which can change once a year. There is a limit on how much that payment can change each year, and that limit is also referred to as a cap.
  46. 91. This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It works sort of like this, but not exactly, so only use this as a guideline: deduct the closing costs from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead of your actual loan amount. You will come up with a number close to the APR. Because you are using the same payment on a smaller amount, the APR is always higher than the actual note rate on your loan. annual percentage rate
  47. 93. Certificate of Reasonable Value Once the appraisal has been performed on a property being bought with a VA loan, the Veterans Administration issues a CRV.