Definitions

The loan-to-value ratio, or LTV, is an important measure that is used by lenders to assess the amount of the loan when compared to the appraised value of the property. It is expressed as a percentage and is a tool used to calculate the amount of the down payment that is necessary for a loan…

Home equity is the difference between the market value of a home and the amount of debt that is owed against it. Home equity can be used as collateral for a loan, or as a source of funds for home improvements, debt consolidation, or other large purchases. It is important to note that the amount…

Escrow is an account that is used to store money, typically in the form of a down payment or closing costs, and hold it until the conditions of the transaction have been fulfilled. Once the requirements have been met, the funds are then released to the appropriate party, allowing the transaction to be completed. This…

A downpayment is an initial payment made towards the purchase of a home or other property. It is typically expressed as a percentage of the total purchase price and is required in order to secure a loan from a lender. The downpayment is usually paid at the time of the closing, and is meant to…

Closing costs are the fees and expenses that are associated with the purchase or sale of a home. These costs may include appraisal fees, title insurance, loan origination fees, and other costs associated with the transaction. Closing costs vary depending on the type of loan and the state in which the property is located.

A bi-weekly mortgage is a type of loan that requires the borrower to make payments on a bi-weekly basis, instead of the traditional monthly payments. The payments are usually for a half of the amount of a monthly payment, and are made every two weeks. This type of loan can result in significant savings for…

An appraisal is an assessment of a property’s value, typically performed by an appraiser. The appraiser evaluates the property, taking into account its condition, location, and other factors, in order to determine its estimated value. Appraisals are often requested by lenders to ensure that the property is worth the amount that they are lending.

An adjustment date is a date specified in a mortgage loan agreement that determines when the interest rate on the loan is adjusted. This date is typically stated in the loan documents, and is usually a certain number of years after the loan origination date or the date that the loan is closed. The adjustment…

Property software is a type of computer program that is specifically designed to assist in the management of real estate properties. It typically includes features such as tracking tenant information, managing rental payments, and calculating and generating reports on rental income. Property software is essential for property owners who need to keep track of their…

The interest rate on a loan is an important factor to consider when taking out a loan; it is the rate of interest that is charged as a percentage of the total loan amount and plays an essential role in determining the monthly payments on the loan. It is important to understand that the higher…