Home Buyer and House Plan Terms and Definitions

Written by Mark Mathis

Continued from page 1

Housing Finance Agency - A state agency which offers a limited amount of below-market-rate home financing for low-and moderate-income households.

Index - The interest rate or adjustment standard which determinesrepparttar changes in monthly payments for an adjustable rate loan.

Infrastructure - The public facilities and services needed to support residential development, including highways, bridges, schools, and sewer and water systems

Interest - The cost paid to a lender forrepparttar 147423 use of borrowed money.

Joint Tenancy - A form of ownership by whichrepparttar 147424 tenants own a property equally. If one dies,repparttar 147425 other would automatically inheritrepparttar 147426 entire property.

Level Payment Mortgage - A mortgage whose payments are identical for each month overrepparttar 147427 life ofrepparttar 147428 loan.

Mortgage Broker - A broker who represents numerous lenders and helps consumers find affordable mortgages;repparttar 147429 broker charges a fee only ifrepparttar 147430 consumer finds a loan.

Mortgage Commitment - A formal written communication by a lender, agreeing to make a mortgage loan on a specific property, specifyingrepparttar 147431 loan amount, length of time and conditions.

Mortgage Company (Mortgage Banker) - A company that borrows money from a bank, lends it to consumers who want to buy homes, then sellsrepparttar 147432 loans to investors.

Mortgagee - The lender who makes a mortgage loan.

Mortgage Loan - A contract in whichrepparttar 147433 borrower’s property is pledged a s collateral and which can be repaid in installments over a long period. The mortgagor (buyer) promises to repay principal and interest, to keeprepparttar 147434 home insured, to pay all taxes, and to keeprepparttar 147435 property in good condition.

Mortgage Origination Fee - A charge by a lender forrepparttar 147436 work involved in preparing and servicing a mortgage application (usually 1 percent ofrepparttar 147437 loan amount).

Negative Amortization - An increase inrepparttar 147438 outstanding balance of a loan when a monthly payment is not large enough to cover all ofrepparttar 147439 interest due.

Note - A formal document showingrepparttar 147440 existence of a debt and statingrepparttar 147441 terms of repayment.

PITI - Principal, interest, taxes, and insurance (the 4 major components of monthly housing payments).

Point - A charge of 1 percent ofrepparttar 147442 mortgage amount. Points are a one-time charge assessed byrepparttar 147443 lender at closing to increaserepparttar 147444 interest yield on a mortgage loan.

Prepayment - Payment of all or part of a debt prior to its maturity.

Principal - The amount borrowed in a loan, excluding interest and other charges.

Property Survey - A survey to determinerepparttar 147445 boundaries of your property. The cost will depend onrepparttar 147446 complexity ofrepparttar 147447 survey.

Rapid Payoff Mortgage - (See Growing Equity Mortgage).

Recording Fee - A charge for recordingrepparttar 147448 transfer of a property, paid to a city, county, or other appropriate branch of government.

Real Estate Settlement Procedures Act (RESPA) - A federal law requiring lenders to provide home buyers with information about known or estimated settlement costs. The act also regulates other aspects of settlement procedures.

R-Value - The resistance of insulation material (including windows) to heat passing through it. The higherrepparttar 147449 number,repparttar 147450 greaterrepparttar 147451 insulating value.

Sales Contract - A contract between a buyer and seller which should explain, in detail, exactly whatrepparttar 147452 purchase includes, what guarantees there are, whenrepparttar 147453 buyer can move in, whatrepparttar 147454 closing costs are, and what recourserepparttar 147455 parties have ifrepparttar 147456 contract is not fulfilled or ifrepparttar 147457 buyer cannot get a mortgage commitment atrepparttar 147458 agreed-upon terms.

Settlement - (See Closing).

Shared Appreciation Mortgage - A loan in which partners agree to share specified portions ofrepparttar 147459 downpayment, monthly payment, and appreciation.

Tenancy in Common - A form of ownership in whichrepparttar 147460 tenants own separate but equal parts. To inheritrepparttar 147461 property, a surviving tenant would either have to be mentioned inrepparttar 147462 will or, inrepparttar 147463 absence of a will, be eligible through state inheritance laws.

Title - Evidence (usually inrepparttar 147464 form of a certificate or deed) of a person’s legal right to ownership of a property.

Transfer Taxes - Taxes levied onrepparttar 147465 transfer of property or on real estate loans by state and/or local jurisdictions.

Veterans Administration (VA) - A federal agency which insures mortgage loans with very liberal downpayment requirements for honorably discharged veterans and their surviving spouses.

Walk-Through - A final inspection of a home before settlement to search for problems that need to be corrected before ownership changes hands.

Warranty - A promise, either written or implied, thatrepparttar 147466 material and workmanship of a product is defect-free or will meet a specified level of performance over a specified period of time. Written warranties on new homes are either backed by insurance companies or byrepparttar 147467 builders themselves.

Zoning - Regulations established by local governments regardingrepparttar 147468 location, height, and use for any given piece of property within a specific area.

============================================= Visit us online at: http://www.houseplancentral.com =============================================

Mark Mathis is a building designer and publisher of several stock house plan websites and informational resources including http://www.HousePlanCentral.com and http://www.HousePlanGallery.com. Be sure to subscribe to both site's eNewsletters to receive special offers, promotions, and subscriber-only features.

Part IV- Different Types of Home Foundations and When to Use Each

Written by Mark Mathis

Continued from page 1

The choice of foundation is also affected by personal preferences and costs. Basements can add thousands of dollars torepparttar cost of a home compared torepparttar 147422 cost of a crawlspace. However, when you considerrepparttar 147423 extra useable space created by a basement it is some ofrepparttar 147424 cheapest square footage space of a home. If you are tight on funds and can't affordrepparttar 147425 basement then it may be a good idea to find a slightly smaller plan and userepparttar 147426 savings to create a basement. You'll end up with a lot more storage space and potential living space by doing this.

Changingrepparttar 147427 Type of Foundation on your home:

Almost any house plan can have its foundation changed. It's common for people to design a different foundation ifrepparttar 147428 available foundations do not suit their needs. If you are currently working with a builder you may want to ask them if they will take care of makingrepparttar 147429 foundation changes for you. Sometimes with foundation design it may be helpful for somebody who is near you to do those changes because they will have more knowledge about your local soil conditions andrepparttar 147430 slope of your lot.

When changing foundation types, pay attention to where you will putrepparttar 147431 furnace, water heater, and stairs. If you need to add basement stairs,repparttar 147432 basement stairs can usually be put under other stairways or you may be able to replace a closet or small room with basement stairs. Another common place to put basement stairs is to replace a mechanical room with stairs and moverepparttar 147433 mechanical items (such asrepparttar 147434 furnace and water heater) torepparttar 147435 basement. Sometimes space nearrepparttar 147436 laundry room, or space nearrepparttar 147437 garage can be used for a basement stairs. Larger walk-in closets are sometimes reduced in size to allow space for basement stairs. You can often add a basement stairs to a plan without increasingrepparttar 147438 size ofrepparttar 147439 plan. However, sometimes space may need to be added to a plan to provide room for a basement stairs.

It should be noted that it isrepparttar 147440 owner's full responsibility to check with his/her local and state building authorities, his/her builder, andrepparttar 147441 designer ofrepparttar 147442 house plan to ensure thatrepparttar 147443 home meets all applicable building codes and requirements.

============================================= Visit us online at: http://www.houseplancentral.com =============================================

Mark Mathis is a building designer and publisher of several stock house plan websites and informational resources including http://www.HousePlanCentral.com and http://www.HousePlanGallery.com. Be sure to subscribe to both site's eNewsletters to receive special offers, promotions, and subscriber-only features.

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