This is a mortgage contract provision requiring the borrower to repay all of their outstanding home loan to the Lender if certain requirements, outlined by the Lender, aren’t met.
When a seller accepts an offer from a buyer, that offer is contingent upon the buyer’s ability to meet certain conditions before finalization of the sale. Contingencies might include the buyer reaching an agreement with the seller on the home inspection, obtaining a clear appraisal, or being approved for mortgage financing.
A house is listed as “active under contract” when the seller has accepted an offer with contingencies, but still wants the house to be listed as active. In this situation, the seller is also likely accepting backup offers in case their current offer fails to meet its contingencies.
If a buyer or seller wants to change the existing contract, they might add an addendum outlining the specific part of the contract they’d like to adjust and the parameters of that change. The rest of the contract stays the same, regardless of the addendum that is attached.
An adjustable-rate mortgage, or ARM, is a type of mortgage in which the interest rate applied to the outstanding balance varies throughout the life of the loan. At the end of the initial fixed-rate period, ARM interest rates will become variable which could either increase or decrease the borrower’s monthly mortgage payment.
The adjustment date usually falls on the first day of the month after mortgage funds are advanced or dispersed to the borrower. This is the date your mortgage begins to accrue interest, though you might not have made a mortgage payment yet.
Median days that all active listings have been on the market during a given time period. This equals the median of the last day of the period, minus the listing added date, so long as the total days active is less than one year and at least 1 day.
Amortization is the schedule of your mortgage payments spread out over time. In real estate, a buyer’s amortization schedule is usually one monthly payment scheduled over a 15- or 30-year period of time.
The APR, or annual percentage rate, refers to the yearly rate charged for a loan. Used on everything from mortgages and car loans to credit cards, APR is a simple numerical term to express the amount paid by an individual each year for the privilege of borrowing money.
An appraisal on your home is an unbiased estimate of how much a home is worth. When buying a home, the lender requires an appraisal by a third party (the appraiser) to make sure the loan amount requested is accurate.