A new construction home is one that has not been previously occupied. Typically, the seller of a new construction home is the builder. On Redfin.com, we define homes for sale as new construction based on whether the listing agent marked them as such in the Multiple Listing Service (MLS). Otherwise, Redfin marks homes as new […]
Net proceeds refers to the amount of money a seller takes away from selling a home. This is different from the homeowner’s equity in the home because it takes into account agent commissions and closing costs, which are paid by the seller and subtracted from the sale price. Closing costs include: Balance of all outstanding mortgages […]
The Natural Hazards Disclosure Act is a California state law requiring sellers and their listing agents to provide prospective buyers with a Natural Hazards Disclosure statement that designates whether the home they’re selling is located in a hazard area. Hazard areas include flood, fire, earthquake fault, and seismic hazard zones. The disclosure should also note […]
Home sellers don’t simply want to put their residence on the market without knowing that the price at which they intend to sell it will produce hefty returns. This means they, along with their agent, need to develop a seller net sheet that outlines what they anticipate earning from their sale. Similarly, buyers want to know all […]
The note rate is the interest rate stated on a mortgage note. It is also commonly referred to as the nominal rate or faces interest rate.
A no-cost mortgage is a type of refinancing in which the lender pays the borrower’s loan settlement costs and extends a new loan — usually in exchange for the borrower paying higher interest rates. The mortgage lender then sells the mortgage to a secondary mortgage market for a higher price because of the high interest rate.
A no cash-out refinance is a type of loan used to improve the rate the borrower pays on the loan. It might also shorten the lifetime of a loan to benefit the borrower. In a no cash-out refinance, the borrower refinances an existing mortgage for equal to or less than the outstanding loan balance. The goal is […]
Amortization refers to the process of paying off a loan with regular payments so the amount you owe on the loan gradually decreases. Negative amortization happens when the amount you owe continues to rise, regardless of regular payments, because you’re not paying enough to cover the interest.
A special area or interest.
Gross sales price, less concessions, to the buyers.