In real estate, the appraised value references the particular value of a property at a particular time. Interest is the cost of borrowing the funds and is expressed as a percentage of the overall amount borrowed. Annual Percentage RateĪnnual percentage rate (APR) refers to the interest rate on a loan for the year. Generally speaking, this language is often found in contracts or other forms of legally binding documents. The amount of money is exactly what it sounds like - it’s the complete sum of funds involved in any given aspect of a real estate transaction.
An amortization schedule can show your client how much of their monthly mortgage payment is going to principal and how much is going toward interest. AmortizationĪs it relates to real estate, amortization is the schedule and distribution of monthly mortgage loan payments. Typically, ARMs offer a lower interest rate than traditional fixed-rate mortgages to begin, but usually the interest rate increases over time. Adjustable-rate mortgages (ARMs) are just what they sound like: Mortgages where the interest rates fluctuate.
