Real Estate Terminology

Real Estate Advisor: The official designation of Chicago Home Partner. We feel that our job is to serve as a true advisor, much like that of a financial or tax advisor, before, during and after the purchase of your home.  It is our responsibility to assist you in the planning of your home buying future to the best of our ability whatever that may consist of.

Adjustable-rate mortgage (ARM): A mortgage with an interest rate that changes, based on a specific index, after a predetermined number of years.

Agency: Any relationship in which one party (agent) acts for or represents another under the authority of the latter.

Amortization schedule: A timetable showing the amount of each mortgage payment applied to interest and principal and the remaining balance after payment is made.

Annual percentage rate (APR): The cost of a mortgage stated as a yearly rate; includes such items as interest, mortgage, and loan origination fee (points).

Appraisal: A qualified appraiser’s written analysis of the estimated value of a property.

Biweekly payment mortgage: A mortgage requiring payments every two weeks rather than the standard monthly payment. The benefit for the borrower is a substantial savings in interest over the life of the loan.

Broker: A person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them.

Capital gains: The profit obtained from the sale of an asset, such as real estate.

Certificate of title: A statement provided by a title company or attorney stating that the title to real estate is legally held by the current owner.

Closing: A meeting at which a sale of a property is finalized.

Closing costs: Expenses incidental to a sale of real estate, such as loan fees, title fees, appraisal fees, etc.

Collateral: An asset (such as a car or a home) that guarantees the repayment of a loan.

Commission: The fee charged by a broker for providing services related to a real estate transaction, such as marketing the property (for the seller), finding a property (for the buyer), and negotiating a purchase contract.