Cathy & Tom Williams and Terry Lang Believe a Mortgage Glossary is Essential in Buying or Selling a Home!

Welcome to our real estate and mortgage glossary for Green, Sahuarita, Tubac, Tucson, Amado, Rio Rico, and all surrounding Pima County, Arizona, areas. Understanding real estate terminology can be of great assistance in buying or selling a home, commercial property, or investment property. In order to help you understand words commonly used in a real estate transaction, we have prepared a list of real estate terms with which you should become familiar. Thanks again and be sure to contact us for any of your real estate needs for Green Valley, Sahuarita, Tubac, Tucson, Amado, Rio Rico, and all surrounding Pima County, Arizona. Valley

Terms:

Appraisal
An educated estimate of the value of a property on a certain date given by a person, usually after an inspection of the property.

ARM
A mortgage whose interest rate is raised or lowered at periodic intervals according to the prevailing interest rates in the market.

As is
Implied in most Agreements of Purchase and Sale, suggests the buyer is accepting the property in it present state and relinquishes and responsibility from the buyer.

Bankruptcy
a) A person who has done any of the acts that by law entitle his creditors to have his estate administered for their benefit; b) a person judicially declared subject to having his estate administered under the bankrupt laws for the benefit of his creditors; c) a person who becomes insolvent.

Bid
To offer (a price) whether for payment or acceptance.

Credit Risk
An estimate of the amount of credit that can be extended to a company or person without undue risk.

Credit Union
A cooperative organization that makes loans to its members at low interest rates.

Home Equity Loan
A loan or credit line that is secured by the equity the borrower has in a home.

Home Loan
a) Money lent at interest; b) something lent usually for the borrower's temporary use.

Interest Rate
The monthly effective rate paid (or received if you are a creditor) on borrowed money. Expressed as a percentage of the sum borrowed.
The percentage usually on an annual basis that is paid for the use of money borrowed from another.

Market Value
An asset's market value is the price it would fetch in the market, if it were sold in the current marketplace.

MLS- IDX
IDX, or broker reciprocity, is a listing sharing arrangement between brokers within a Mulitple Listing Service.

Mortgage
A temporary, conditional pledge of property to a creditor as security for performance of an obligation or repayment of a debt.

Prime Rate
The lowest rate of interest on bank loans at a given time and place, offered to preferred borrowers.

Property Tax
A tax levied on real or personal property.

Title Insurance
A type of insurance which guarantees the ownership and quality of title to land.