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

Negative Amortization: Occurs when monthly payments fail to cover the interest cost. The interest not covered is added to the unpaid principal balance so that even after several payments, you could owe more than you did at the beginning of the loan.

Net worth: The value of all of a person’s assets, including cash, minus all liabilities.

Courtesy of Sonata Realty