Real Estate Terms

  1. 100% Mortgage

  2. 125% Loan

  3. 2-1 Buydown

  4. 2/28 Adjustable-Rate Mortgage - 2/28 ARM

  5. 3-2-1 Buydown

  6. 3/27 Adjustable-Rate Mortgage - 3/27 ARM

  7. 48-Hour Rule

  8. 5-1 Hybrid Adjustable-Rate Mortgage - 5-1 Hybrid ARM

  9. 5-6 Hybrid Adjustable-Rate Mortgage - 5-6 Hybrid ARM

  10. 80-10-10 Mortgage

  11. Ability To Repay

  12. Absentee Landlord

  13. Absentee Owner

  14. Absolute Auction

  15. Absolute Title

  16. Absorption Rate

  17. Abstract Of Title

  18. ABX index

  19. Accelerated Amortization

  20. Acceleration Clause

  21. Acquisition Fee

  22. Acquittance

  23. Active Tranche

  24. Ad Valorem Tax

  25. Add-On Factor

  26. Adjustable-Rate Mortgage - ARM

  27. Adjustment Date

  28. Adjustment Frequency

  29. Adjustment Index

  30. Adjustment Interval

  31. Adverse Possession

  32. Affidavit Of Title

  33. After-Acquired Collateral

  34. Agency MBS Purchase

  35. Alienation Clause

  36. All-Cash Deal

  37. All-In-One Mortgage

  38. Alligator Property

  39. Alt-A

  40. Alternative Mortgage Instrument

  41. Alternative Mortgage Transaction Parity Act - AMTPA

  42. Amortization Schedule

  43. Amortized Loan

  44. Amount Financed

  45. Annual Cap

  46. Annual Mortgage Statement

  47. Appraisal Costs

  48. Appraisal Management Company - AMC

  49. ARM Index

  50. ARM Margin

  51. Assignor

  52. Assumable Mortgage

  53. Assumption Clause

  54. Attornment

  55. Automated Underwriting

  56. Automated Valuation Model - AVM

  57. Backlog

  58. Bad Title

  59. Bait And Switch

  60. Balloon Loan

  61. Balloon Mortgage

  62. Balloon Payment

  63. Bank-Owned Property

  64. BBA Mortgage Approvals

  65. Beginning Market Value (BMV)

  66. Below Market Interest Rate - BMIR

  67. Beneficial Interest

  68. Best And Final Offer

  69. Best Efforts Mortgage Lock

  70. Betterment Insurance

  71. Bi-Monthly Mortgage

  72. Bi-weekly Mortgage

  73. Bidding War

  74. Big Ticket Item

  75. Bird Dog

  76. Biweekly Mortgage

  77. Blanket Mortgage

  78. Broker

  79. Broker Price Opinion - BPO

  80. Broker's Open House

  81. Building And Loan Associaiton

  82. Bullet Loan

  83. Bungalow

  84. Business Broker

  85. Buy-Up

  86. Buydown

  87. Buyer's Market

  88. Canada Mortgage and Housing Corporation - CMHC

  89. Canadian Mortgage and Housing Corporation - CMHC

  90. Canadian Rollover Mortgage

  91. Cap

  92. Capital Gain

  93. Capital Loss

  94. Capitalization Rate

  95. Capitalized Cost Reduction

  96. Capped Rate

  97. Captive Real Estate Investment Trust

  98. Cash Available For Distribution - CAD

  99. Cash Equity

  100. Cash-On-Cash Return

Hot Definitions
  1. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by additional investment would not warrant the expense. A harvest strategy is employed when a line of business is considered to be a cash cow, meaning that the brand is mature and is unlikely to grow if more investment is added.
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