Let’s take a look at 4 unique Real Estate terms.
‘3 – 2 – 1 Buydown’
This term sounds a little like 3, 2, 1, Action! It is actually describing a mortgage that has a series of three temporary initial interest rates that increase until a permanent interest rate is reached. This payment method is often used to help a borrower qualify for a mortgage who has excess cash, but a low income.
This is a valuation technique that can be used by real estate agents to determine the value of an asset. For example, if an agent wants to determine the value of a home, they may appraise the value of a home based on the most recent selling price of a similar home in the same neighborhood with similar attributes.
An Exotic Mortgage, also called non-traditional mortgage, is a type of home loan that offers lower monthly payments during the first couple years. After the first couple years payments can increase to twice or more than the initial monthly payment. These mortgages make up a small portion of the mortgage market.
When ownership of real estate is in question, a Quiet Title is a lawsuit filed to establish ownership. Real Estate owners want to ensure that they have a clear title. This means that the title has no liens or levies which are also known as ‘clouds on the title’, and can be resolved by filing a quiet title.