Realtors and Real Estate Agents - Sign Up for Free Account at Property.net.my >>

Malaysia Real Estate
Malaysia Real Estate Portal
 FAQFAQ   SearchSearch   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 

Buyer’s Guide to Financing Terms

Post new topic   Reply to topic    Malaysia Real Estate Forum Index -> Real Estate Events
View previous topic :: View next topic  
Author Message

Joined: 25 Aug 2009
Posts: 47

PostPosted: Thu Feb 13, 2014 1:47 am    Post subject: Buyer’s Guide to Financing Terms Reply with quote

Mortgage - a long term loan, usually between 15 and 30 years, to finance your home.
Closing costs - these are costs that are associated with acquiring your loan. This includes but not limited to: pre-paid charges, appraisals, title insurance, inspections, and homeowners insurance.

Appraisal - a 3rd party evaluation of the property to determine the value of the home and justify your loan.
Loan to value ratio (LTVR) - the amount of the loan divided by the value of the home. For example, if you bought a home for $100,000 and put down 10%, you would borrow $90,000 and have a 90% LTVR. $90,000/$100,000=90%.

Discount points - these are interest charges paid up front in order to reduce the cost of your long term rate. Points might be a good thing IF you plan on staying in your home for a long time.

Origination fees - a fee charged by the bank to do all the paperwork, verifications, preparations and underwriting of your loan (ensuring it meets the lender's criteria).

Title insurance - this is an insurance policy that protects your "title" to the property from existing and future claims against the property.
Prepaid charges and escrow - these are initial deposits set up to pay for your homeowners insurance and property taxes. The escrow account pays these for you.
Inspections - these are 3rd party inspections of the property to protect you from hidden problems. The inspector is licensed and will evaluate structural and mechanical conditions of the home. He may also evaluate Radon, termite and mold (this is usually done by a mold lab).
Closing - the date when you will sign all of the required documents. After closing you are officially a homeowner! You usually get pssession the day of closing.
Back to top
View user's profile
Display posts from previous:   
Post new topic   Reply to topic    Malaysia Real Estate Forum Index -> Real Estate Events All times are GMT + 8 Hours
Page 1 of 1

Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum

This is a free forum intended to foster communication between all users.
Hileytech Sdn Bhd does not guarantee the correctness or validity of postings, nor does Hileytech endorse any postings. No posting or contents in this forum can be copied and reproduced without prior permission from Hileytech and the owner of the posting. All other names and marks are trade names, trademarks or registered trademarks of their respective owners.
Powered by phpBB, Another web site by www.hileytech.com,Forum Archive
Tel : +603-89449965, +603.89449365 ::  Fax : +603-89440665 :: hiley@hileytech.com