Special offer

Real Estate Terms A - Z | The I's - L's | Panama City Real Estate

By
Real Estate Agent with Counts Real Estate Group, Inc. BK3128229

Panama City Real EstateThe next chapter in my continuing series of real estate terms, focus's on I's through L's.

Remember, it's not that important to memorize the definitions as now you will have a point of reference to find these and other terms and definitions as you need.

These are by no means all the terms used, just a few notable ones.

So, let's continue shall we?

Real estate terms A To Z:

 

The I's

 

Initial interest rate

The original interest rate of the mortgage at the time of closing. This rate changes for an adjustable-rate mortgage (ARM). Sometimes known as "start rate" or "teaser."

Insurance

A contract that provides compensation for specific losses in exchange for a periodic payment. An individual contract is known as an insurance policy, and the periodic payment is known as an insurance premium.

Insured mortgage

A mortgage that is protected by the Federal Housing Administration (FHA) or by private mortgage insurance (MI). If the borrower defaults on the loan, the insurer must pay the lender the lesser of the loss incurred or the insured amount.

Interest

The fee charged for borrowing money.

Interest rate

The rate of interest in effect for the monthly payment due.

Interest rate buydown plan

An arrangement wherein the property seller (or any other party) deposits money to an account so that it can be released each month to reduce the mortgagor's monthly payments during the early years of a mortgage. During the specified period, the mortgagor's effective interest rate is "bought down" below the actual interest rate.

Interest rate ceiling

For an adjustable-rate mortgage (ARM), the maximum interest rate, as specified in the mortgage note.

Investment property

A property that is not occupied by the owner.

IRA (Individual Retirement Account)

A retirement account that allows individuals to make tax-deferred contributions to a personal retirement fund. Individuals can place IRA funds in bank accounts or in other forms of investment such as stocks, bonds or mutual funds.

The J's

Joint tenancy

A form of co-ownership that gives each tenant equal interest and equal rights in the property, including the right of survivorship.

Jumbo loan

A loan that exceeds Fannie Mae’s mortgage amount limits. Also called a nonconforming loan.

The K's

Nothing really for the K's ;)

The L's

Landlord

One who rents property to a tenant.

Lease

A written agreement between the property owner and a tenant that stipulates the conditions under which the tenant may possess the real estate for a specified period of time and rent.

Lease-purchase mortgage loan

An alternative financing option that allows low- and moderate-income home buyers to lease a home from a nonprofit organization with an option to buy. Each month's rent payment consists of principal, interest, taxes and insurance (PITI) payments on the first mortgage plus an extra amount that is earmarked for deposit to a savings account in which money for a downpayment will accumulate.

Lien

A legal claim against a property that must be paid off when the property is sold.

Line of credit

An agreement by a commercial bank or other financial institution to extend credit up to a certain amount for a certain time to a specified borrower. See home equity line of credit.

Listing

An employment contract between principal and agent that authorizes the agent (such as a broker) to perform services for the principal and his property.

Loan

A sum of borrowed money (principal) that is generally repaid with interest.

Loan origination

The process by which a mortgage lender brings into existence a mortgage secured by real property.

Lock-in

A written agreement in which the lender guarantees a specified interest rate if a mortgage goes to closing within a set period of time. The lock-in also usually specifies the number of points to be paid at closing.

Lock-in period

The time period during which the lender has guaranteed an interest rate to a borrower. See lock-in

 

 Stop by and read the next terms in this series or if you prefer, read them all at your leisure on my Panama City Realty Group website


 

List your home with the Panama City Realty Group

 

If you're interested in purchasing or selling a home or condo in Panama City or Panama City Beach contact Jennifer today!. Directly: (850 ) 774-6582.


panama city beach realtor

Welcome to our Panama City Beach real estate blog. Please share your thoughts and opinions as comments are always welcome, whether you are a consumer, journalist or another real estate professional.

Our blog includes local and relevant national real estate information, Condo and Home market statistics, personal and professional insights and information about various neighborhoods, subdivisions and listings. If you would like additional information on any of our topics, please contact me directly and I will be glad to assist you.

Posted by

Jennifer Mackay in Panama City

Jennifer Mackay
Panama City Realty Group
850-774-6582 Cell
PanamaCityRealtyGroup.com
Counts Realty Group, Inc
3009 Highway 77, Suite H
Panama City, Florida 32405

 

 

 

 

Jennifer Mackay on YouTube | Panama City Realty GroupJennifer Mackay on Facebook | Panama City Realty Group Jennifer Mackay on google plus | Panama City Realty Group Jennifer Mackay on Twitter| Panama City Realty Group Jennifer Mackay on LinkedIn | Panama City Realty Group Jennifer Mackay on Pinterest | Panama City Realty Group

Comments (6)

Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

This is a very clever series Jennifer. You are covering all the basis. Great information.

Aug 24, 2016 07:01 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I must admit you are doing a great job Jennifer Mackay 

Aug 24, 2016 02:08 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

K is that this alphabetical series has given readers lots of knowledge in real estate !

Aug 24, 2016 06:16 PM
James Dray
Fathom Realty - Bentonville, AR

Good morning Jennifer.  So many terms so little time.

Aug 24, 2016 07:26 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Jennifer.  You forgot to put Jennifer into the J's!  

Aug 24, 2016 09:13 PM
Jessie Cochran
Counts Real Estate Group, Inc. - Panama City, FL
Panama City Realty Group

Great series of posts Jennifer - thanks

Aug 25, 2016 11:43 PM