chicago real estate glossary
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Real estate developed or purchased to produce income, such as a rental unit.
A number used to compute the interest rate for an adjustable-rate mortgage (ARM). The index is generally a published number or percentage, such as the average interest rate or yield on U.S. Treasury bills. A margin is added to the index to determine the interest rate that will be charged on the ARM. This interest rate is subject to any caps on the maximum or minimum interest rate that may be charged on the mortgage, stated in the note.
Individual Retirement Account (IRA):
A tax-deferred plan that can help you build a retirement nest egg.
An increase in prices.
Initial Interest Rate:
The original interest rate for an adjustable-rate mortgage (ARM). Sometimes known as the "start rate."
A request for a copy of your credit report. An inquiry occurs every time you fill out a credit application and/or request more credit. Too many inquiries on a credit report can hurt your credit score.
The regular periodic payment that a borrower agrees to make to a lender.
A loan that is repaid in accordance with a schedule of payments for a specified term (such as an automobile loan).
The cost you pay to borrow money. It is the payment you make to a lender for the money it has loaned to you. Interest is usually expressed as a percentage of the amount borrowed.
Interest Accrual Rate:
The percentage rate at which interest accumulates or increases on a mortgage loan.
Interest Rate Cap:
For an adjustable-rate mortgage, a limitation on the amount the interest rate can change per adjustment or over the lifetime of the loan, as stated in the note.
Interest Rate Ceiling:
For an adjustable-rate mortgage (ARM), the maximum interest rate, as specified in the mortgage note.
Interest Rate Floor:
For an adjustable-rate mortgage (ARM), the minimum interest rate, as specified in the mortgage note.
A property purchased to generate rental income, tax benefits, or profitable resale rather than to serve as the borrower's primary residence. Contrast with "second home."
Prepared by and used with the permission of the FTC.