Important financial real estate terms to know

by Middleton Realty, Inc. 01/22/2023

The more real estate terms you understand, the more comfortable you will be in your home buying process. This is especially true for financial vocabulary related to real estate transactions.

To help familiarize you with some of these important concepts, here is a quick guide to financial real estate terms:

Fixed rate mortgage

A fixed rate mortgage is one of the many types of mortgage loan available to prospective buyers. A fixed rate mortgage is a loan that maintains the same interest rate throughout the entire term of the loan.

This means the interest rate won’t fluctuate with market conditions, and won’t increase or decrease over time. A fixed rate mortgage is beneficial for homeowners who want to know exactly how much their monthly mortgage payment will be.

Down payment

The down payment is the amount of money paid upfront to a mortgage lender to buy a home. The amount of the down payment can affect things like interest rates and the total amount of the mortgage loan.

For instance, a large down payment means you borrow less money, and therefore pay more upfront rather than more overtime in interest.

Fair market value

Fair market value refers to the variable value of a property based on market conditions. A real estate agent can help you find the fair market value of a home by conducting a comparative analysis of similar properties in the same area.

Some of the factors that can impact market value include curb appeal, square footage, energy efficiency and overall condition of the property.

These are just a few examples of real estate terms that can help you in a real estate transaction. By learning the language real estate agents use, the more confident you will feel on the search for your dream home.

About the Author
Author

Middleton Realty, Inc.

Patrick Middleton, Broker/ Owner of Middleton Realty Corp. A Jacksonville native, I obtained my real estate license in 1985 and opened Middleton Realty in 1995. My interest in real estate was spurred by a desire to invest in residential properties. This interest became a focal point of my business. For over 30 years, I have been helping people build their investment portfolios and helping home-buyers make fiscally sound decisions. My love of the outdoors, especially fishing and boating, has given me an edge in helping others who want to incorporate Jacksonville’s outstanding outdoor amenities into their personal lifestyle. Willie Inman- Real Estate Agent NACA approved, first time home buyer specialist, commercial . 904 673-1388, [email protected] Tom Burau- Real Estate Agent Certified distressed property specialist, military relocation professional. Tom works with first time home-buyers as well as exclusive beach properties and multi-unit investment properties. Contact info: 904 553-8291, [email protected] Also on Facebook.