Jun 19 2007
Glossary
1. 1/2 BA
Half Bathroom - This usually consists of a toilet and a sink in the same room.
2. 3/4 BA
Three Quarter Bathroom - This consists of a toilet, sink and either a shower or a tub, but not both. A common example would be a bathroom with a shower stall or a soaking tub along with a toilet and a sink.
3. ABR
The Accredited Buyer Representative designation, conferred by the Real Estate Buyer's Agent Council (REBAC), confirms an agent's mastery of buyer representation. Agents who have earned the ABR designation have demonstrated experience in buyer representation. Two key areas emphasized in ABR training are how to identify potential problems with a property and how to negotiate the best price on behalf of the buyer. REBAC is an affiliate of the National Association of Realtors
4. APR
Annual Percentage Rate - is an expression of the effective interest rate that will be paid on a loan, taking into account one-time fees and standardizing the way the rate is expressed. In other words the APR is the total cost of credit to the consumer, expressed as an annual percentage of the amount of credit granted. APR is intended to make it easier to compare lenders and loan options.
5. ARM
An Adjustable Rate Mortgage (ARM), variable rate mortgage or floating rate mortgage is a mortgage loan where the interest rate on the note is periodically adjusted based on an index. This is done to ensure a steady margin for the lender, whose own cost of funding will usually be related to the index. Consequently, payments made by the borrower may change over time with the changing interest rate (alternatively, the term of the loan may change).
6. CBR
Certified Buyer Representative - The CBR designation is earned after completing twenty-four hours (3 days) of classroom study. A significant benefit of the CBR® designation is that designees can continue to use their certification mark by simply maintaining their membership in the National Association of REALTORS® and complying with the NAR Code of Ethics; there is no mandatory annual fee required to retain the CBR® designation. The CBR® designation has been approved by NAR as a professional designation that can be offered to boards and associations.
7. CFD
Contract For Deed - Land contract (a.k.a. contract for deed or "installment sale agreement") is a contract between the owner of the real property (called the "vendor" or the "seller") and a person who wants to buy the property (the "vendee", "contract purchaser", "purchaser" or "buyer")for an agreed-upon purchase price. Under a land contract the vendor grants equitable title to the purchaser (which consists of virtually all rights to the property other than actual legal title), and the purchaser agrees to pay the purchase price to the vendor over time, usually in monthly installments, by a certain date. When the full amount of the purchase price is paid, the vendor is obligated to deliver legal title to the purchaser by an actual deed, and upon delivery of the deed, the purchaser owns equitable and legal title to the property.
8. CHMS
Certified Home Marketing Specialist - is national designation that elevates the concept of staging to a higher level of service. Agents who have the CHMS designation have learned proven staging techniques, pricing strategies and national home buying research techniques. CHMS equips agents with the information the need to successfully gain a Sellers’ confidence at a listing presentation.
9. CLAP
Clapboard, also known as bevel siding or lap siding (with regional variants as to the exact definitions of these terms), is a board used typically for exterior horizontal siding that has one edge thicker than the other and where the board above laps over the one below. It is often found in New England architecture. In newer, cheaper construction, clapboard is often imitated as "siding" made of vinyl, aluminum, or fiber cement.
10. CLDSC
A cul-de-sac is a dead-end street with only one inlet/outlet. In modern urban planning culs-de-sac are created to limit through-traffic in residential areas. While some culs-de-sac provide no possible passage, others allow cyclists, pedestrians or other non-automotive traffic to pass.
11. CLHMS
Certified Luxury Home Marketing Specialist - The Institute for Luxury Home Marketing trains Real Estate Agents who work in the luxury market and awards the Certified Luxury Home Marketing Specialist designation to members who meet strict performance standards. Based in Dallas, Texas the Institute has an International membership.
12. CLTV
Combined Loan To Value (ratio) (CLTV) is the proportion of loans (secured by a property) in relation to its value. The term "Combined Loan To Value" adds additional specificity to the basic Loan to Value which simply indicates the ratio between one primary loan and the property value. When "Combined" is added, it indicates that additional loans on the property have been considered in the calculation of the percentage ratio. The aggregate principal balance(s) of all mortgages on a property divided by its appraised value or Purchase Price, whichever is less. Distinguishing CLTV from LTV serves to identify loan scenarios that involve more than one mortgage. For example, a property valued at $100,000 with a single mortgage of $50,000 has an LTV of 50%. A similar property with a value of $100,000 with a first mortgage of $50,000 and a second mortgage of $25,000 has an aggregate mortgage balance of $75,000. The CLTV is 75%. Combined Loan to Value is an amount in addition to the Loan to Value which simply represents the first position mortgage or loan as a percentage of the property's value.
13. COCR
Cash on Cash Return is a percentage that measures the return on cash invested in an income producing property. It is calculated by dividing before-tax cash flow by the amount of cash invested (down payment amount) and is expressed as a percentage. If before-tax cash flow for an investment property is equal to $15,000 and our cash invested in the property is $100,000, cash on cash return is equal to 15%.
14. FBA
Full Bathroom - This consists of a toilet, sink, shower and tub. The shower and tub can be combined into one unit and still be considered a full bath.
15. FDIC
The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation created by the Glass-Steagall Act of 1933. The vast number of bank failures in the Great Depression spurred the United States Congress into creating an institution which would guarantee deposits held by commercial banks, inspired by the Commonwealth of Massachusetts and its Deposit Insurance Fund (DIF). The FDIC provides deposit insurance which currently guarantees checking and savings deposits in member banks up to $100,000 per depositor.
16. LTV
The loan-to-value (LTV) ratio is a mathematical calculation which expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property. For instance, if a borrower wants $130,000 to purchase a house worth $150,000, the LTV ratio is $130,000/$150,000 or 87%.
17. NAR
The National Association of Realtors (NAR), whose members are known as Realtors (rē(ə)ltər; -ˌtôr), is North America's largest trade association representing over 1 million members (as reported in 2006), including NAR's institutes, societies, and councils, involved in all aspects of the residential and commercial real estate industries. NAR also functions as a Self Regulatory Organization for real estate brokerage. The National Association of Realtors was founded on May 12th, 1908 as the National Association of Real Estate Exchanges, the founding group being located in Chicago, Illinois. In 1916, the National Association of Real Estate Exchanges changed its name to The National Association of Real Estate Boards. The current name was adopted in 1974.
18. PITI
PITI is an acronym lenders use to describe the different components that make up your monthly mortgage payment. It stands for: principal, interest, taxes and insurance.
19. PMI
PMI or Private Mortgage Insurance is normally required when you buy a house with less than 20% down. Mortgage insurance is a type of guarantee that helps protect lenders against the costs of foreclosure. This insurance protection is provided by private mortgage-insurance companies. It enables lenders to accept lower down payments than they would normally accept. In effect, mortgage insurance provides what the equity of a higher down payment would provide to cover a lender's losses in the unfortunate event of foreclosure. Therefore, without mortgage insurance, you might not be able to buy a home without a 20% down payment. The cost of PMI increases as your down payment decreases. Example: The cost of PMI on a 10% down payment is less than the cost of PMI on a 5% down payment. Your PMI premium is normally added to your monthly mortgage payment.
20. REALTOR
A REALTOR, pronounced "Real-tore", is a real estate salesperson or broker who is a member of the National Association of Realtors (NAR). All REALTORs are brokers/salespersons, but not all brokers/salespersons are REALTORs.
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