Here are ten more terms to further enrich your real estate vocabulary:
- Amortization: A term commonly used in finance and real estate that refers to the process of spreading out a loan into a series of fixed payments over time. These payments cover both the principal amount borrowed and the interest on the loan. The purpose of amortization is to enable the borrower to reduce their debt gradually over the loan term until it is completely paid off.
- Condominium (Condo): A private residence within a larger building or complex, owned individually, with shared common areas such as pools, garages, and gyms.
- Due Diligence: The comprehensive review and analysis of a property, including its physical condition, legal status, and financial viability, before completing a transaction.
- Equity Loan: A loan based on the equity of the homeowner’s property, often used for home improvements or paying off high-interest debts.
- Foreclosure: The legal process by which a lender takes control of a property, evicts the homeowner, and sells the home after the homeowner fails to make full principal and interest payments on a mortgage.
- Gentrification: The process of renovating and improving a district so that it conforms to middle-class taste, which may result in the displacement of lower-income families and small businesses.
- Hazard Insurance: Insurance coverage that protects against damage to property from fire, wind, vandalism, or other hazards.
- Interest-Only Mortgage: A type of mortgage where the borrower only pays the interest on the loan for a set period, after which they start paying both principal and interest.
- Mortgage Broker: A professional who acts as an intermediary between borrowers and lenders, working to match up borrowers with the best mortgage options available to them.
- Notary Public: A public official authorized to verify signatures on legal documents, administer oaths, and perform other administrative functions, often involved in real estate transactions to ensure document authenticity.
These terms cover a wide range of topics within real estate, providing valuable insights into the complexities of property ownership, financing, and management.