Glossary
Getting accustomed to real estate terminology can sometimes feel like learning a whole new language. To help, we created a glossary of both Ourboro specific and general real estate terms. With some help from definitions, real-world examples, and context around why each term is important, you’ll be fluent in no time.
a
- Amortization PeriodThe amortization period is the length of time it will take a homeowner to pay off their mortgage, including interest.... Read More
b
- Beneficial InterestBeneficial interest is defined as an individual's right to benefit from a property or asset, regardless if they are... Read More
c
- Closed MortgageA closed mortgage means that the terms a homeowner agrees to when they sign their mortgage contract can not change... Read More
- Closing CostsClosing costs are the various legal and administrative costs paid at the time of purchase and sale of a home. Read More
- Co-investmentA co-investment is the name given to both the homebuyer’s and Ourboro’s down payment contributions towards, or... Read More
- Co-ownershipCo-ownership, also known as shared ownership, is when one or more parties enter an agreement to buy and own a property... Read More
- Co-ownership AgreementA co-ownership agreement is a legal agreement between all co-owners of a property. This agreement establishes the rights... Read More
- Complimentary Home Maintenance ProgramThe Complimentary Home Maintenance Program gives Ourboro co-owners access to professional home maintenance on a regular... Read More
- Credit CheckA credit check is a process used to determine an individual’s creditworthiness. Read More
d
- Down PaymentA down payment is the amount of money a homebuyer puts towards purchasing their home on closing day, while their... Read More
e
- EquityIn traditional real estate, equity is the value of the homeowner’s ownership share in the property. Read More
f
- Fair Market ValueFair market value is the price that a buyer and seller agree to for a given asset or property. Read More
- Fixed Rate MortgageA fixed rate mortgage has an interest rate that will remain the same over the mortgage term. Read More
- Future ValueFuture value is a financial concept that refers to the value of an asset at a specific point in the future, given a... Read More
g
- GuarantorA guarantor is someone who agrees to pay a mortgage or loan if the original borrower cannot, usually because they do not... Read More
h
- Homeowner’s Advance Fund (HAF)The Homeowner’s Advance Fund (HAF) is a pool of funds set aside for Ourboro homeowners to withdraw from when they may... Read More
i
- Inspection ConditionAn inspection condition is a clause included in an Agreement of Purchase and Sale that states that the offer is... Read More
j
- Joint TenancyJoint tenancy is a form of co-ownership, used when two or more individuals have equal ownership rights and obligations... Read More
k
- Knob and Tube WiringKnob and tube wiring is a type of electrical wiring that was widely used until the 1940s. Read More
l
- LandlordA landlord is someone who owns and rents out real estate - such as homes, condos, apartments, and land - to tenants with... Read More
- ListingA real estate listing is a detailed description of a property that is for sale, including information such as the... Read More
m
- MortgageA mortgage is a loan used to purchase or refinance a property with the property itself serving as collateral on the... Read More
- Mortgage BrokerA mortgage broker acts as an intermediary between the homebuyer receiving the mortgage and the mortgage lender. Read More
- Mortgage Pre-approvalA mortgage pre-approval is a process in which a lender evaluates a potential borrower's creditworthiness and confirms... Read More
- Mortgage Principal RepaymentA mortgage principal repayment is the amount paid by the co-owner towards their mortgage principal that is returned to... Read More
n
- Negative AmortizationNegative amortization occurs when the monthly payments a homeowner makes toward their mortgage are not enough to cover... Read More
o
- Open MortgageAn open mortgage is a mortgage that allows repayment of the principal loan amount at any time, without penalty. Read More
p
- Professional Co-ownershipProfessional Co-ownership is a form of co-ownership but, instead of being between two or more individuals, it is formed... Read More
q
- Qualifying RatiosQualifying ratios are benchmarks used by lenders to determine the maximum amount of debt a borrower can take on,... Read More
r
- Real Estate AgentReal estate agents help clients that are looking to buy or sell property. Read More
- Renovation CreditA Renovation Credit is the amount paid back to a co-owner from the property’s sale proceeds to cover expenses paid when... Read More
s
- Sale ProceedsSale proceeds are the money that a seller receives from the sale of a home. Read More
- Selling BonusWhen selling a property co-owned with Ourboro, closing costs are generally the co-owner’s responsibility. Read More
t
- TitleA property’s title is the legal way of saying who owns the property and has the rights to it. Read More
u
- UnderwritingUnderwriting is the process a lender takes to assess the risk associated with approving a mortgage loan application. Read More
v
- Variable Rate MortgageA variable rate mortgage is a mortgage with an interest rate that may change periodically, based on the market conditions. Read More
w
- WalkthroughA walkthrough is one of the last steps a buyer will take before they close on their new home. Read More
x
- X-factorThe X-factor is a unique or intangible quality that a property has, setting it apart from others on the market. Read More
y
- YieldYield is a key metric used by real estate investors to evaluate the return on investment of a property. Read More
z
- ZoningZoning refers to the permitted uses of land in a specific area, as well as any applicable restrictions or requirements... Read More