The Federal Home Loan Mortgage Corporation, known as Freddie Mac, is a government-sponsored enterprise that buys loans from mortgage lenders, packages them together, and sells them as a mortgage-backed security to investors on the open market. This increases the supply of money available for mortgage lending and increases the money available for new home purchases. […]
The Federal Housing Administration (FHA) is a government agency that provides insurance for loans granted by FHA-approved lenders throughout the US. The FHA insures banks that provide loans to borrowers with low down payments, usually 3.5%–5%, and competitive interest rates. The FHA sets the guidelines for the various types of loans it makes available to borrowers. […]
This is far and away the most popular type of mortgage given to borrowers today. Why? Because, as noted in our real estate definition for adjustable-rate mortgages, fixed-rate mortgages are the sameeach and every month of the amortization period. There is no potential fluctuation with interest rates, as there is with ARMs. So, as long as […]
A fixed-rate mortgage is one of the most common types of loans. It comes with an interest rate that stays the same for the lifetime of the loan, and provides the borrower with more stability and predictability over the lifetime of their loan. While mortgage payments can fluctuate as property taxes and homeowner’s insurance change, many consumers […]
(1) A property’s fair market value is its accurate valuation in a free and open market under the condition that buyers and sellers are knowledgeable about the asset, acting in their best interests, and free of undue pressure to complete the transaction. (2) The whole point of having an appraisal and assessment completed for a home […]
The Fair Credit Reporting Act (FCRA) was enacted in 1970 and ensures fairness, accuracy, and privacy of personal information contained in files maintained by credit reporting agencies. The goal of this act is to protect consumers from having misinformation used against them.
(1) A property that is for sale by the owner of the property. Homes listed as for sales by owner (FSBO) are being sold without the help of a real estate agent. The biggest benefit to the seller is they avoid paying commission fees — but there are few benefits to the buyer. (2) Chats with your […]
That a time, usually assigned, when a real estate sales agent answers telephones, e-mails, or walk-in requests for information on property.
A predetermined amount of compensation received or paid for a specific service in a real estate transaction.
A form of property ownership where the owner has the right to use and dispose of property at will.