Land O Lakes Real Estate News - JLS Investment Realty

HUD MEDIAN INCOME   Back to top
Median family income for a particular county or metropolitan statistical area (MSA), as estimated by the Department of Housing and Urban Development (HUD).

HUD-1 STATEMENT   Back to top
A standardized, itemized list, published by the U.S. Department of Housing and Urban Development (HUD), of all anticipated CLOSING COSTS connected with a particular property purchase.

IMPROVED LAND   Back to top
Any parcel of land which has been changed from its natural state through the creation of roads, buildings or other structures.

IMPROVEMENTS   Back to top
Any item added to vacant land with the intent of increasing its value or usability.

IMPROVEMENT RATIO   Back to top
The comparative value of an improved piece of land to its natural, unaltered state.

INCOME APPROACH   Back to top
The process of estimating the value of property by considering the present value of a stream of income generated by the property.

INCOME PROPERTY   Back to top
A piece of property whose highest and best use is the generation of income through rents or other sources.

INDEPENDENT APPRAISAL   Back to top
An estimation of value created by a professional, certified appraiser with no vested interest in the value of the property.

INSPECTION   Back to top
The examination of a piece of property, its buildings or other amenities.

INSURABLE TITLE   Back to top
The title to property which has been sufficiently reviewed by a title insurance company, such that they are willing to insure it as free and clear.

INTEREST RATE   Back to top
A percentage of a loan or mortgage value that is paid to the lender as compensation for loaning funds.

INVESTMENT PROPERTY   Back to top
Any piece of property that is expected to generate a financial return. This may come as the result of periodic rents or through appreciation of the property value over time.

JAMB   Back to top
The side of a door frame.

JOINT TENANCY   Back to top
A situation where two or more parties own a piece of property together. Each of the owners has an equal share, and may not dispose of or alter that share without the consent of the other owners.

JOISTS   Back to top
Horizontal beams laid on edge to support flooring or a ceiling.

JUDGMENT   Back to top
An official court decision. If the judgment requires payment from one party to another, the court may put a lien against the payee's property as collateral.

JUDICIAL FORECLOSURE   Back to top
A type of foreclosure conducted as a civil suit in a court of law.

JUMBO LOAN   Back to top
A mortgage loan for an amount greater than the limits set by Fannie Mae and Freddie Mac. Often called non-conforming loans.

LALLY COLUMN   Back to top
A concrete filled steel pipe used to support beams.

LATE CHARGE   Back to top
An extra charge, or penalty added to a regular mortgage payment when the payment is made late by an amount of time specified in the original loan document.

LATENT DEFECTS   Back to top
Any defect in a piece of property which is not readily apparent, but which has an impact of the value. Structural damage or termite infestation would be examples of latent defects.

LEASE   Back to top
A contract between a property owner and a tenant specifying the payment amount, terms and conditions, as well as the length of time the contract will be in force.

LEASEHOLD ESTATE   Back to top
A type of property ''ownership'' where the buyer actually has a long-term lease on the property.

LEASE OPTION   Back to top
A lease agreement that gives the tenant an option to buy the property. Usually, a portion of the regular monthly rent payment will be applied towards the down payment.

LEGAL DESCRIPTION   Back to top
The description of a piece of property, identifying its specific location in terms established by the municipality or other jurisdiction in which the property resides. Often related in specific distances from a known landmark or intersection.

LENDER   Back to top
The person or entity who loans funds to a buyer. In return, the lender will receive periodic payments, including principal and interest amounts.

LIABILITIES    Back to top
A person's outstanding debt obligations.

LIABILITY INSURANCE   Back to top
Insurance that covers against potential lawsuit brought against a property owner for alleged negligence resulting in damage to another party.

LIEN   Back to top
Any claim against a piece of property resulting from a debt or other obligation.

LIFE CAP   Back to top
A limit on how far the interest rate can move for an Adjustable Rate Mortgage.

LIKE-KIND PROPERTY   Back to top
Any property which is substantially similar to another property.

LINE OF CREDIT   Back to top
An extension of credit for a certain amount for a specific amount of time. To be used by the borrower at his discretion.

LIQUID ASSET   Back to top
Any asset which can be quickly converted into cash at little or no cost, or cash itself.

LOAN    Back to top
Money borrowed, to be repaid with interest, according to the specific terms and conditions of the loan.

LOAN OFFICER   Back to top
A person that "sells" loans, representing the lender to the borrower, and the borrower to the lender.

LOAN ORIGINATION   Back to top
How a lender refers to the process of writing new loans.

LOAN SERVICING   Back to top
The processing of payments, mailing of monthly statements, management and disbursement of escrow funds etc Typically carried out by the company you make payments to.

LOAN-TO-VALUE RATIO (LTV)   Back to top
The comparison of the amount owed on a mortgaged property to its fair market value.

LOCK-IN    Back to top
An agreement between a lender and a borrower, guaranteeing an interest rate for a loan if the loan is closed within a certain amount of time.

LOCK-IN PERIOD   Back to top
The amount of time the lender has guaranteed an interest rate to a borrower.

MAJOR DEFICIENCY   Back to top
A deficiency that strongly impacts the usability and habitability of a house. Or a deficiency that may be very expensive to repair.

MANUFACTURED HOUSING   Back to top
Once known as ''mobile homes,'' manufactured housing is any building which has been constructed off site, then moved onto a piece of real property.

MARGIN   Back to top
The difference between the interest rate and the index on an adjustable rate mortgage.

MARGINAL LAND   Back to top
Land whose value has been diminished due to some internal defect or external condition. In most cases, the cost to correct the flaw or condition is as much or more than the expected return from the property.

MASTER ASSOCIATION   Back to top
An umbrella organization that is made up of multiple, smaller home owner's associations. Often found in very large developments or condominium projects.

MATURITY   Back to top
The date on which the principal balance of a financial instrument becomes due and payable.

MERGED CREDIT REPORT   Back to top
A credit report derived from data obtained from multiple credit agencies.

METES AND BOUNDS   Back to top
A traditional way of describing property, generally expressed in terms of distance from a known landmark or intersection, and then following the boundaries of the property back to its origin.

METROPOLITAN AREA   Back to top
The accumulated land in and around a city or other municipality which falls under the political and economic influence of that entity.

MINERAL RIGHTS   Back to top
The legal right to exploit and enjoy the benefits of any minerals located below the surface of a parcel of land.

MISREPRESENTATION   Back to top
A statement by one party in a transaction that is incorrect or misleading. Most misrepresentations are deemed to be intentional and thus may constitute fraud. Others, however, some are rendered through simple mistakes, oversights or negligence.

MORTGAGE   Back to top
A financial arrangement wherein an individual borrows money to purchase real property and secures the loan with the property as collateral.

MORTGAGE BANKER   Back to top
A financial institution that provides primary and secondary mortgages to home buyers.

MORTGAGE BROKER   Back to top
A person or organization that serves as a middleman to facilitate the mortgage process. Brokers often represent multiple mortgage bankers and offer the most appropriate deal to each buyer.

MORTGAGEE   Back to top
The entity that lends money in a real estate transaction.

MORTGAGE INSURANCE   Back to top
A policy that fulfills those obligations of a mortgage when the policy holder defaults or is no longer able to make payments.

MORTGAGE INSURANCE PREMIUM (MIP)   Back to top
A fee that is often included in mortgage payments that pays for mortgage insurance coverage.

MORTGAGE LIFE INSURANCE   Back to top
A policy that fulfills the obligations of a mortgage when the policy holder dies.

MORTGAGOR   Back to top
The entity that borrows money in a real estate transaction.

MULTI-FAMILY PROPERTIES   Back to top
Any collection of buildings that are designed and built to support the habitation of more than four families.

NATIONAL ASSOCIATION OF MASTER APPRAISERS (NAMA)   Back to top
A non profit professional association organized in 1982, dedicated to the advancement of professionalism in real estate appraisal.

NATIONAL SOCIETY OF REAL ESTATE APPRAISERS   Back to top
An organization founded in 1956 which promotes standards of professionalism in its members.

NATURAL VACANCY RATE   Back to top
The percentage of vacant properties in a given area that is the result of natural turnover and market forces.

NEGATIVE AMORTIZATION   Back to top
When the balance of a loan increases instead of decreases. Usually due to a borrower making a minimum payment on an Adjustable Rate Mortgage during a period when the rate fluctuates to a high enough point that the minimum payment does not cover all of the interest.

NEIGHBORHOOD LIFE-CYCLE   Back to top
The evolution of neighborhood use and demographics over time. Economic fluctuations, municipal zoning changes and population shifts can effect the life cycle.

NEIGHBORHOOD   Back to top
A subsection of a municipality that has been designated by a developer, economic forces or physical formations.

NET LEASABLE AREA   Back to top
The space in a development, outside of the common areas, that can be rented to tenants.

NEW ENGLAND COLONIAL   Back to top
An architectural style dating from early American history typified by a two-story building with clapboard siding.

NO-COST LOAN   Back to top
Many lenders offer loans that you can obtain at "no cost." You should inquire whether this means there are no "lender" costs associated with the loan, or if it also covers the other costs you would normally have in a purchase or refinance transactions, such as title insurance, escrow fees, settlement fees, appraisal, recording fees, notary fees, and others. These are fees and costs which may be associated with buying a home or obtaining a loan, but not charged directly by the lender. Keep in mind that, like a "no-point" loan, the interest rate will be higher than if you obtain a loan that has costs associated with it.

NO-POINT LOAN   Back to top
A loan with no "points". The interest rate on such a loan will be higher than a loan with points paid. Also sometimes refers to a refinance loan where closing costs are included in the loan.

NON-CONFORMING USE   Back to top
The use of land for purposes contrary to the applicable municipal zoning specifications. Often occurs when zoning changes after a property is in use.

NONLIQUID ASSET   Back to top
Any asset which can not be quickly converted into cash at little or no cost.

NOTE   Back to top
A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.

NOTE RATE   Back to top
The interest rate stated on a mortgage note.

NOTICE OF DEFAULT   Back to top
Formal written notice from a lender to a borrower that default has occurred.

OBSOLESCENCE   Back to top
The process of an assets value diminishing due to the development of more desirable alternatives or because of the degradation of its capabilities.

OCCUPANCY   Back to top
A physical presence within and control of a property.

OCCUPANCY RATE   Back to top
The percentage of properties in a given area that are occupied.

OCTOPUS RECEPTACLE   Back to top
An outlet with too many devices plugged into it, using a power strip or other device to multiply the outlets.

OFF-SITE IMPROVEMENTS   Back to top
Buildings, structures or other amenities which are not located on a piece of property, but are necessary to maximize the use of the property or in some way contribute to the value of the property.

OFF-STREET PARKING   Back to top
Designated parking spaces associated with a particular building or other structure which are not located on public streets.

OLD TERMITE ACTIVITY   Back to top
Where no termites are currently active, but indications of past activity can be seen.

ON-SITE IMPROVEMENTS   Back to top
Buildings, structures or other amenities that are erected on a piece of property and contribute to its value.

OPEN SPACE   Back to top
Any land which has not had any significant buildings or structures erected on it. Most often used to describe desirable neighborhood features like parks.

OPEN SPLICE   Back to top
An uncovered electrical connection.

ORIGINAL EQUITY   Back to top
The amount of cash a home buyer initially invests in the home.

ORIGINAL PRINCIPAL BALANCE   Back to top
The total amount of principal owed on a mortgage loan at the time of closing.

ORIGINATION FEE   Back to top
Refers to the total number of points paid by a borrower at closing.

OWNER FINANCING   Back to top
A transaction where the property owner provides all or part of the financing.

OWNER OCCUPIED   Back to top
The state of property wherein the owner occupies at least some portion of the property.

PARGING   Back to top
The cement coat applied to block foundations.

PARTIAL INTEREST   Back to top
A shared ownership in a piece of property. May be divided among two or more parties.

PARTIAL PAYMENT   Back to top
A payment of less than the regular monthly amount. Usually, a lender will not accept partial payments.

PERIODIC PAYMENT CAP   Back to top
The limit on how much regular monthly payments on an Adjustable Rate Mortgage can change during one adjustment period.

PERIODIC RATE CAP   Back to top
The limit on how much the interest rate on an Adjustable Rate Mortgage can change during any one adjustment period.

PERSONAL PROPERTY   Back to top
Owned items which are not permanently affixed to the land.

PERSONAL RESIDENCE   Back to top
The primary domicile of a person or family.

PLANNED UNIT DEVELOPMENT (PUD)   Back to top
A coordinated, real estate development where common areas are shared and maintained by an owner's association or other entity.

PLAT   Back to top
A plan or chart of a piece of land which lays out existing or planned streets, lots or other improvements.

POINT   Back to top
A percentage of a mortgage amount (one point = 1 percent).

PRE-APPROVAL   Back to top
The process of applying for a mortgage loan and becoming approved for a certain amount at a certain interest rate before a property has been chosen. Pre-approval allows the borrower greater freedom in negotiations with sellers.

PREFABRICATED   Back to top
Any building or portion thereof which is manufactured and assembled off site, then erected on a property.

PREPAYMENT   Back to top
Payment made that reduces the principal balance of a loan before the due date and before the loan has become fully amortized.

PREPAYMENT PENALTY   Back to top
A fee that may be charged to a borrower who pays off a loan before it is due.

PRE-QUALIFICATION   Back to top
Less formal that pre-approval, pre-qualification usually means a written statement from a loan officer indicating his or her opinion that the borrower will be able to become approved for a mortgage loan.

PRIME RATE   Back to top
The interest rate that banks and other lending institutions charge other banks or preferred customers.

PRINCIPAL   Back to top
The amount owed on a mortgage which does not include interest or other fees.

PRINCIPAL BALANCE   Back to top
The outstanding balance of principal on a mortgage. Does not included interest due.

PRINCIPAL, INTEREST, TAXES, AND INSURANCE (PITI)   Back to top
The most common constituents of a monthly mortgage payment.

PRIVATE MORTGAGE INSURANCE (PMI)   Back to top
A form of mortgage insurance provided by private, non-government entities. Normally required when the LOAN TO VALUE RATIO is less that 20%.

PROPERTY   Back to top
Any item which is owned or possessed.

PURCHASE AGREEMENT   Back to top
A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.