Real Estate:Definition of terms
In order for you as a buyer or seller to understand Real Estate further, we will give you a glossary that you can use before pushing through any plans.Here’s the list:(Source:Real Estate abc.com)
1.)amortization-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.
2.)clear title-A title that is free of liens or legal questions as to ownership of the property.
3.)collateral-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.
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