Amenities refer to the nonmonetary benefits derived from property ownership that contribute to its desirability. This can include both tangible and intangible features such as pride of ownership, modern appliances, and fixtures.
The process of converting rental apartments or other types of multi-unit buildings into individually owned units usually under a condominium structure.
Equity buildup refers to the gradual increase in a homeowner's equity or ownership stake in a property as debt principal is paid down through scheduled mortgage payments.
An equity loan, often referred to as a home equity loan or second mortgage, allows homeowners to borrow money by leveraging the equity in their homes. It is a type of loan in which the borrower uses the equity of their home as collateral.
Equity takeout refers to the process of refinancing a property mortgage primarily to raise cash. This results in an increase in the debt secured by the property while leveraging the equity built into the home.
An escrow payment is part of a borrower's monthly mortgage payment that is set aside in an account to cover property taxes and insurance when they become due.
The Federal Housing Administration, or FHA, is a U.S. government agency within the Department of Housing and Urban Development that administers various loan programs, loan guarantees, and loan insurance programs designed to make homeownership more accessible.
Commonly known as Fannie Mae, FNMA is a government-sponsored enterprise that expands the secondary mortgage market by securitizing mortgage loans, thus providing lenders with liquidity and facilitating homeownership in the United States.
The Federal Housing Administration (FHA) is a United States government agency that provides mortgage insurance on loans made by FHA-approved lenders. It aims to make homeownership more accessible, especially for first-time homebuyers, by reducing the risk for lenders and arranging easier borrowing terms for borrowers.
The FHA 235 program provides an interest-rate subsidy for lower-income families to become homeowners by reducing the required monthly mortgage payments through government assistance.
An FHA Mortgage Loan is a mortgage loan insured by the Federal Housing Administration (FHA), designed to help lower and moderate-income individuals qualify for homeownership. This type of loan allows borrowers to make a lower down payment and can be more lenient on credit scores compared to conventional loans.
The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a government-sponsored enterprise (GSE) that buys and sells existing residential mortgages, facilitating liquidity within the mortgage market and enabling more Americans to achieve homeownership.
The Homeowners Protection Act of 1998 regulates private mortgage insurance requirements, aiming to protect homeowners from unnecessary continued insurance payments when their loan-to-value ratio reaches certain thresholds.
Homeownership is the state of living in a structure that one owns. It is contrasted with being a renter or tenant in one’s home. Homeownership provides numerous benefits such as security, pride, and investment advantages but also introduces responsibilities.
The term 'House Poor' refers to a situation where a homeowner spends a large portion of their income on owning a home, leaving very little for discretionary or other essential expenditures.
Housing refers to structures intended for residential use. It encompasses various types of dwellings from single-family detached houses to multi-unit apartments.
An illiquid asset is an asset that cannot be quickly converted into cash without a substantial loss in value. This is a critical consideration in real estate investing, as properties can take considerable time to sell and often incur significant transaction costs.
A Mortgage Credit Certificate (MCC) enables a borrower to claim a portion of the mortgage interest paid as a credit against federal income tax, helping first-time home buyers by reducing their overall tax liability.
PITI stands for Principal, Interest, Taxes, and Insurance, which are the components of a mortgage payment. Understanding PITI is crucial for homeowners and prospective buyers as it determines the total cost of owning a home.
Pride of ownership refers to the sense of well-being, accomplishment, and pleasure derived from owning a home or other real property. It embodies an intangible benefit of homeownership correlated with social status, financial accomplishment, and a commitment to the local community.
A primary residence, often referred to as a principal residence, is the main home where an individual resides most of the time. This contrasts with a second home or vacation home.
A real estate property tax deduction allows homeowners to reduce their taxable income by the amount they pay in property taxes. This deduction can be claimed on an individual's federal income tax return under itemized deductions.
A REALTIST is a member of the National Association of Real Estate Brokers (NAREB), primarily consisting of minority brokers and real estate professionals who uphold a rigorous ethical code. They often represent minority communities and promote fair housing and homeownership opportunities.
Reconveyance is the process through which the lender transfers the title of the property back to the borrower once the mortgage loan is paid off in full. This legal instrument removes the lender's claim and gives the property owner clear title.
The redemption period is the time during which a former owner can reclaim their foreclosed property by paying off the debt and any associated legal fees.
A tax and insurance escrow account, often required by mortgage lenders, is used to fund annual property tax assessments and hazard insurance premiums for the mortgaged property. This account is funded through monthly contributions by the mortgagor.
