Think Realty
A lender whose business includes making mortgage loans ...
Mortgage Interest Deduction (MID)
This IRS policy allows homeowners who meet certain requirements to deduct the cost of the interest on their mortgage loans from their taxable income. This can lower the amount of taxes an individual owes on their income and, indirectly, make owning a home more affordable since the home loan diminishes ...
An insurance policy designed to protect lenders from losses due to default on a mortgage loan. Borrowers who put less than 20% down on a property are more likely to have to obtain mortgage insurance, which can be public or private. Mortgage insurance requirements often lapse when a property reaches ...
An intermediary party who brokers mortgage loans on behalf of individuals and businesses. Usually a mortgage broker is paid when the loan closes, and the lender or the borrower may be responsible for that fee ...
A legal agreement between a lender and a homebuyer wherein the lender loans money for the purchase of the property and the property serves as collateral until the debt is paid ...
An agreement between a tenant and property owner that permits the tenant to rent from the owner one month at a time rather than via a more extended lease agreement. Often month-to-month tenancies are more expensive since the landlord does not have the same stability that comes with an extended ...
The minimum amount that an IRA account holder must withdraw each year. Generally, these distributions are required starting at age 70 1/2. Note: ROTH IRA’s do not require these withdrawals until after the death of the owner ...
The amount that a property may be sold for in the marketplace. Market value may be derived by comparing a property to other similar properties that have sold recently or by attempting to determine the price at which a property would sell immediately. While both may be referred to as ...
A financial term used mainly by lenders to express the ratio of a loan to the value of the asset purchased using the loaned money or to the value of the asset serving as collateral on the loan. A borrower taking out a $65,000 loan to purchase a $100,000 property ...
An agreement between a lender and a delinquent borrower to either bring a loan back on track or resolve the delinquency in some other way. Workouts often include extensions of the payback period to lower monthly payments and other adjustments to the loan terms ...
The process of creating a new loan, from application to evaluation to disbursal of funds ...
A debt. In real estate, if a property has a lien against it, that property is serving as collateral for the debt in some form or fashion ...
The world’s most widely used benchmark for short-term interest rates. LIBOR stands for London Interbank Offered Rate. It is based on the US dollar, the euro, the pound sterling, the Japanese yen, and the Swiss franc. When LIBOR rises, interest rates also tend to rise ...
Using borrowed capital for an investment and expecting the profits made to be greater than the cost of the loan ...
A traditional rental agreement may include a first-refusal option for the tenant under certain circumstances. A lease-purchase may define a set time period within which the purchase may be made, pricing, and how the down payment will be obtained, since often tenants planning to exercise a lease-purchase will set a ...
The agreement between the owner of a property and a tenant (lessee) that defines how the property will be used by the tenant, for what period of time, and how the owner will be paid for that use. The lease also details the property owner’s obligations to the tenant and ...
An individual who owns a rental property. Sometimes the term landlord is used to indicate a rental owner who actively manages their rental property, but the term includes both active and passive rental investors ...
An agreement between two or more parties whereby one party (the trustee) agrees to hold ownership of a piece of real estate for the benefit of another party (the beneficiary) ...
A property specifically purchased for the purpose of creating a return on the investment via rental income, future resale, or other strategy or combination of strategies. This includes flipping properties and buy-and-hold properties ...
Money paid regularly at a predetermined rate as payment for use of funds lent. Interest may also be paid as a fee for delaying repayment on a debt, as in an “interest only” loan ...
Institutional Real Estate Investor
A large organization that makes substantial investments in real estate- based assets ...
The term is usually used to refer to western Riverside County and southwestern San Bernardino County, but broader definitions include eastern Los Angeles County, the Pomona Valley, desert communities in Palm Springs, and Coachella Valley. The Inland Empire has more room for development than coastal areas of California ...
a property purchased specifically to produce income via renting, leasing, or appreciation. Income properties may be commercial or residential ...
A calculated value that shows where home prices should be according to local income. Income price metrics are used to help determine whether a market is over- or underpriced, and are based on data from the FHFA Home Price Index and the Bureau of Economic Analysis. This metric was developed ...
Also sometimes referred to as horizontal improvements. Includes zoning changes, mapping, clearing ground, cutting roads, installing utilities, and paving roads, sidewalks, and gutters ...
