San Diego, California
Telephone - Cell:
(619) 300-8819
Facsimile:
(619) 229-0048
E-mail:
Click here to email Bob
Copyright © 2006 by
Bob Schwartz
San Diego
real estate broker
Certified
Residential Specialist
Promotions Unlimited
All rights reserved.
You may reproduce materials available at this
site for your own personal use and for non-commercial distribution. All
copies must include this copyright statement. |
|
Top Ten Loan Terms in San Diego
By Bob Schwartz, CRS, GRI, San
Diego real estate broker
Everyone in San Diego knows that you should never sign on the dotted line
without first reading the contract. The same goes for loans. Signing a loan
without knowing the content and what everything means can be damaging to your
finances, credit, and future investments. Before you sign anything, make sure
that you know the following terms and how they will apply to you.
1. Interest rate. The percentage of your loan that is added to the total that
you owe every month is called your interest rate. The percentage will fluctuate
according to the economy and will affect your payments.
2. Fixed Rate. A fixed rate will be an interest rate that stays at the same
percentage throughout the total period of your loan.
3. Variable Rate. A variable rate will adjust following the economy and the
charts that are stating what the rate amount should be. This type of rate
usually moves annually and adjusts according to a particular given range of
percentages.
4. Principal. The principal is what you will view as your investment as it is
what you pay on your actual property.
5. Escrow. This is similar to a savings account for your loan. Whatever you put
in escrow will amass without paying directly into the loan. At the finish of the
term you can use it to finish paying off the loan or to invest in another loan.
6. Title. A title will be your claim to your home after it is legitimately
yours. It concedes that the property belongs to you.
7. Deed. A deed is most frequently used as a title for a commercial area. As
opposed to declaring ownership it shows that the property is leased to the one
who is using it as a business.
8. Home Equity. This is a loan or line of credit that you can get for your home.
It will finance up to eight percent of your other loan and be reimbursed back
later. This helps you if you want to consolidate loans or invest more into the
property.
9. Appraisal. After an inspection of the home is made, an appraisal will be
made. This will be an approximated value of what the home is worth.
10. Equity. This is the actual amount of the property that you own. Usually,
this is what is being paid off of your principal amount.
After you've mastered these basic terms, you will be able to expand on your
knowledge and find the right loan to meet your needs. These simple terms will
help you in making the right decision for the type of loan that you want.
Back To San Diego Information
|
 |
