Mortgage: A mortgage is a type of loan used to procure or maintain real estate such as a home, land, or multifamily properties. The borrower agrees to pay the lender over time, typically in a series of regular payments that are divided into principal and interest. The property then serves as collateral to secure the loan.
A borrower must first applies for a mortgage through a lender and ensures that they meet several requirements, including minimum credit scores and down payments. Mortgage applications go through a rigorous underwriting process before they reach the closing phase. Mortgage types vary based on the needs of the borrower, such as fixed and adjustable rate loans.
Adjustable Rate Mortgage: An adjustable-rate mortgage, also called an ARM, is a home loan with an interest rate that adjusts over time based on the market. ARMs typically start with a lower interest rate than fixed-rate mortgages, so an ARM is a great option if your goal is to get the lowest possible mortgage rate starting out.
Federal Reserve: The Federal Reserve System — also known as the Federal Reserve or the Fed — is the central bank of the United States, which sets policies to keep the economy steady and controls the money supply, among other responsibilities. The word “system” is important for understanding that the Fed is not a single central bank like in many other countries. Instead, it consists of three main entities-
-
The Federal Reserve Board of Governors.
-
12 Federal Reserve Banks.
-
The Federal Open Market Committee.
Eviction: An eviction is a legal process through which a landlord can remove a tenant from a property the tenant is renting. Many evictions happen for lease violations, such as not paying rent, but they can happen for other reasons as well.
Comparative market analysis (CMA):A comparative market analysis (CMA) estimates a home’s price based on recently sold, similar properties in the immediate area. Real estate agents and brokers create CMA reports to help sellers set listing prices for their homes and help buyers make competitive offers.
