3 Financial real estate terms you should know

by Jan Kennemer 04/28/2024

The more real estate terms you understand, the more comfortable you will be in your home buying process. This is especially true for financial vocabulary related to real estate transactions.

To help familiarize you with some of these important concepts, here is a quick guide to financial real estate terms:

Fixed rate mortgage

A fixed rate mortgage is one of the many types of mortgage loan available to prospective buyers. A fixed rate mortgage is a loan that maintains the same interest rate throughout the entire term of the loan.

This means the interest rate won’t fluctuate with market conditions, and won’t increase or decrease over time. A fixed rate mortgage is beneficial for homeowners who want to know exactly how much their monthly mortgage payment will be.

Down payment

The down payment is the amount of money paid upfront to a mortgage lender to buy a home. The amount of the down payment can affect things like interest rates and the total amount of the mortgage loan.

For instance, a large down payment means you borrow less money, and therefore pay more upfront rather than more overtime in interest.

Fair market value

Fair market value refers to the variable value of a property based on market conditions. A real estate agent can help you find the fair market value of a home by conducting a comparative analysis of similar properties in the same area.

Some of the factors that can impact market value include curb appeal, square footage, energy efficiency and overall condition of the property.

These are just a few examples of real estate terms that can help you in a real estate transaction. By learning the language real estate agents use, the more confident you will feel on the search for your dream home.

About the Author

Jan Kennemer

Jan will show you how you can live close to Washington, DC – by public transit and/or highway – and still enjoy all the many amenities and friendliness of a quiet community. Jan is a life-long resident of Arlington, Va. So, she is very familiar with northern Virginia …Arlington, Falls Church, Alexandria and close-in Fairfax. She knows where to find those little out-of the-way places where you will still get excellent value and a home that meets your needs. As a Realtor® for over 20 years, Jan has developed a customized system for marketing and selling properties which includes the latest technologies combined with tried and true practices. She has received special training in working with first time buyers, repeat buyers and seniors. She is a certified VHDA trainer and is certified as a Senior Real Estate Specialist (SRES©). Jan is also a certified e-Pro. She gets results you want – the best price in the shortest time. Jan is dedicated to helping clients satisfy their needs and wants while providing them with a strong investment for the future. She is readily available to provide explanations and information. She won’t push you into making an uncomfortable choice. Jan helps you to fully understand the transaction, so that you can always make an informed decision based on facts and figures.