Balloon - A loan which has a series of monthly payments (often for 5 years or less) with the remaining balance due in a large lump sum payment at the end. Binder - A receipt for a deposit paid to secure the right to purchase a home at terms agreed upon by the buyer and seller. Buydown - A subsidy (usually paid by a builder or developer) to reduce the monthly payments on a mortgage loan. Cap - A limit to the amount an interest rate or a monthly payment can increase for an adjustable rate loan either during an adjustment period or over the life of the loan. Certificate of Occupancy - A document from an official agency stating that the property meets the requirements of local codes, ordinances, and regulations. Closing - A meeting to sign documents which transfer property from a seller to a buyer. (Also called settlement) Closing Costs - Charges paid at settlement for obtaining a mortgage loan and transferring real estate title. Conditions, Covenants, and Restrictions (CC and Rs) - The standards that define how a property may be used and the protections the developer has made for the benefit of all owners in a subdivision. Condominium - A home in a multi-unit complex; each purchaser owns an individual unit, and all the purchasers jointly own the common areas, such as the surrounding land, hallways, etc. Conventional Loan - A mortgage loan not insured by a government agency (such as FHA or VA). ABOUT THE AUTHOR
Mark Mathis is a building designer and publisher of several stock house plan websites and informational resources including http://www.HousePlanCentral.com, http://www.HousePlanGallery.com, and http://www.moneytalks-bswalks.com. Be sure to visit each site and subscribe to our eNewsletters to receive special offers, promotions, and subscriber-only features.