Gulfport Mortgage Terms Glossary – A-D

    Adjustable Rate Mortgage (ARM)

    For people looking for a Gulfport Mortgage, an adjustable rate mortgage is a kind of mortgage where the interest rates change. They start with an initial rate, but the rate changes as the market indexes fluctuate.

    Amortization

    This is found in the amortization schedule and shows the loan’s value over a set amount of time.

    Annual Percentage Rate (APR)

    To find out the true cost of a loan, the APR must be used. It will include all fees, insurance rates and interest costs.

    Appreciation

    Appreciation refers to how much the value of property increases over time.

    Assessed Value

    This is the amount set by an assessor and is used to figure out annual taxes.

    Balloon Mortgage

    A balloon mortgage is a high-risk loan that lasts for a short period of time.

    Bridge Loan

    Used to effect a sale, a bridge loan is intended to be just a short-term loan.

    Capital Gain

    The amount of profit gained from an asset like a property.

    Capital Gain Tax

    This is the tax charged on any profit made from selling a home.

    Closing Costs

    When a home sells, a closing cost is charged to the buyer and seller. This includes documentation fees, origination fees and payments to the lawyer.

    Comparable Sales (Comps)

    Comparable sales are the price of similar homes in the area. It can be used to calculate a home’s value.

    Conforming Loan

    This is a traditional loan that has limits within parameters set by a Government Sponsored Enterprise.

    Contingency

    Contingencies are clauses listed in a real estate agreement that show the buyer or seller’s rights.

    Conventional Mortgage

    This is a type of mortgage provided by a government-sponsored organization and is different from FHA loans.

    Deed

    A deed is an official document that shows property ownership.

    Depreciation

    Depreciation is the value that a property loses by the time. This could be caused by damage or by a poor economy.

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