Can You Tell Me What These Real Estate Terms Mean?
AMORTIZATION:
The gradual retirement of a debt by means of partial payments of the principal at regular intervals plus interest.
APPRAISAL:
The process of estimating value.
COMPOUND INTEREST:
Interest on the original principal and on interest accrued.
DATE OF CLOSING:
When the buyer delivers the balance of the money due and the seller delivers a deed. Legal title to the property passes from the seller to the buyer.
DEED:
The written document that conveys title or an interest in property.
EASEMENT:
The right by one landowner over the land of another.
EQUITY:
The difference between the market value of the property and the mortgage loans against property. i.e. the real value the owner has invested in his property.
LIEN:
A legal claim affecting property.
MORTGAGE:
A charge against property for repayment of a debt.
TERM:
The length of time for which the money is loaned.
TITLE:
The evidence that the owner of the land has lawful ownership.