| A | B |
|---|
| appraisal | an estimate of the current value of the property and use that as a basis for a listing price |
| home equity loan | a loan based on the difference between the current market value of your home and the amount you still owe on the mortgage |
| defaults | unable to make payments |
| refinance | take out a new mortgage at a lower interest rate |
| closing | meeting of the seller, the buyer, and the lender of funds or representatives of each party to compelte the transaction |
| closing costs | settlement costs, or charges when a real estate transaction is completed |
| title insurance | type of insurance that protects the buyer in case problems with the title are found later |
| deed | official document transferring ownership from seller to buyer |
| amortization | the balance of the loan is reduced every time you make a payment |
| conventional mortgage | offers a buyer a fixed interest rate and fixed schedule of payments |
| adjustable rate mortgage (ARM) | has an interest rate that increases or decreases during the life of the loan. |
| points | extra charges that must be paid by the buyer in order to get a lower interest rate |
| mortgage | long term loan extended to someone who buys property |
| private mortgage insurance (PMI) | special policy that protects the lender in case the buyer can't make payments or can't make them on time |
| earnest money | portion of the purchase price to show the seller you are serious |
| escrow account | money is held in trust until it can be delivered to the desginated party |
| zoning laws | regulations that limit how property in a given area can be used |
| equity | the value of the home less the amount still owed on the money borrowed to purchase it |
| renters insurance | type of insurance that covers the loss of a tenant's personal property as a result of damage or theft |
| security deposit | an amount of money paid to the owenr of the property by a tenanct to guard against any financial loss that the tenant might cause |
| lease | legal document that defines the conditions of the rental agreement between the tenant and the landlord |
| sublet | to have a person other than the orginal tenant take over the rental unit and payments for the remaining term of the lease |
| landlord | person who owns the property that you rent |
| mobility | the ability to move easily from place to place |
| tenant | a person who pays for the right to live ina residence owned by someone else |
| lifestyle | the way they choose to spend their time and money |
