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Buying a home can be confusing. Knowing the ABCs of bank and contract terms can help demystify the process and help you understand what certain terms mean.

An adjustable rate mortgage is a loan with interest rates that fluctuate periodically. Additional principle payments mean that extra money is put in with each payment to accelerate paying off the loan. Accelerated cost recovery is a tax calculation that gives greater depreciation in the early years of ownership. Acceleration clause is a provision that allows the lender to get the balance of the loan should the borrower miss a payment. Acceptance means that the seller has okayed the buyers offer. This is a written acceptance.

An adjustment period is the time between interest rate adjustments. Assessed value is the value of the home assessed by the tax assessor so they can determine a tax rate. An assumable mortgage is one that can be transferred to another borrower. An assumption clause show that the buyer has assumed mortgage responsibility from the seller; the assumption fee is what is charged the buyer to process new documents.

Closing costs are costs related to the loan and include all loan, title, and appraisal fees. These fees are summed up on something called a closing statement; closing means the last step of the process where documents are signed and recorded and the transfer of property takes place. Breach of contract means the failure to execute terms of the contract without legal cause. A breach of warranty means that the seller is unable to pass a clear title to the buyer. A balloon loan is a mortgage where monthly installments are not enough to pay off the loan over the period of time required, so a lump-sum or “balloon” payment will be due.

The terms here concern buying and signing a contract. To learn more and search all real estate terms, just head online and type in “real estate glossary” to learn more. Innumerous terms are related to real estate in general, buying real estate, and selling real estate.

You don’t have to spend hours on the Web looking for information about wildwood real estate agent.