Mortgage Commitment
The willingness of a lender to give a mortgage to a mortgagor. A mortgage commitment will give a time period the mortgage will be given and an indication of the interest rate to be charged on the mortgage. The mortgage will actually be granted at a closing. For example, John obtains a mortgage commitment from a bank to give him a $100,000 mortgage to buy a home for $150,000. The closing will be in six weeks and the bank gives a lock-in clause of 8% on the mortgage.
Popular Real Estate Terms
Sale that is finalized only in the case of a particular occurrence or eventuality. ...
Methods of owning real estate. Ownership form has important consequences for income tax, estate tax, corporate income tax, and survivorship. Real estate may be owned by one or more persons. ...
To define active participation, we have to look at owning residential rental real estate. Activities that handle rental real estate are considered passive activities and are affected by the ...
Relationship between individuals or entities out of which exists a mutual interest. An example is a privity of contract among the contracting parties concerning the actions each are to take. ...
Geographic location where a vacant or occupied structure exists. It usually means the land reserved is for a future building. ...
Generally, the escalation clause, often known as the escalator clause, means a provision in a contract enabling an upsurge in prices, bids, or wages. You must understand that they come into ...
Pipes transporting water. ...
The common law right of a landowner whose land borders a river or stream to use and enjoy that water. ...
Choosing alternative real estate investment instruments having different risk-return features. Diversification can be done by regions and types of real estate. Diversification provides a ...
Have a question or comment?
We're here to help.