Real Estate Glossary

Listed below are brief descriptions of some common terms used in real estate transactions. These are general terms and definitions and are not intended to apply to all possible uses of a term. Please let us know if you have any questions regarding these items.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Margin: The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.

Mortgage: A legal document that pledges a property to the lender as security for payment of a debt.

Mortgage Banker: A company or individual engaged in the business of originating mortgage loans with its own funds, selling those loans to long term investors, and servicing the loans for the investor until they are paid in full.

Mortgage Broker: A person who buys mortgages wholesale from lenders and then sells them to buyers. Can "shop your loan around" to find the best rate. Good for people with less-than-stellar credit histories.

Mortgage Insurance: A contract that insures the lender against loss caused by a mortgagor’s default on a government mortgage or conventional mortgage.

Multiple Listing Service (MLS): A cooperative listing of nearly all the homes on the market for real estate agents.

Courtesy of Sonata Realty