Buying a Home in Amelia Island? Five Real Estate Terms You'll Need to Know

Buying a Home in Amelia Island? Five Real Estate Terms You'll Need to Know

published on February 4, 2019 by Brandon Gill

 

During your process of homebuying you will hear a number of new terms that you may not understand. Your Amelia Island Realtor, will assist you with anything you do not understand.

The terminology involved in the real estate market can be vexing for the newcomer, but if you're getting prepared to buy a home, there are a few choice words you should take some time to learn. While it's hard to learn the ins and outs in one article, here's a place to begin with five terms you may be hearing a lot of in the future.

Amortization Period

It may sound like a very fancy term, but the amortization period or mortgage term is simply the length of time it will take you to pay off your mortgage loan by monthly mortgage payments. While 25 years is the standard amortization period, it can vary. Your Amelia Island real estate agent may help you find a lender, or you may already have a mortgage professional you wish to use. This professional will explain how your loan works and the term of the loan.

Fixed Rate Mortgage

A fixed rate mortgage is one of the interest rate options you'll have, and this involves a stable interest rate that remains unchanged. While this means your monthly payment will stay the same each month, it can also mean a higher amount paid overall since your fixed rate may be higher than the market rate over time. 

Adjustable Rate Mortgage

The other option when it comes to mortgage interest rates is an adjustable rate, which means that your monthly payment will fluctuate along with the prime market rate. While this can provide a sense of insecurity since your mortgage payment will shift each month, it can end up being more economical than a fixed rate. 

Closing Costs

Buying a home can cost enough with the loan, the down payment, and the interest, but closing costs will also be a part of the housing costs. While closing costs generally range anywhere from 2-5%, they include items like loan administration costs and title insurance costs that come part and parcel with the mortgage. Your Amelia Island real estate agent will provide you with a closing disclosure detailing all expenses with regards to your closing. You should have this prior to closing so you can be prepared. Your Amelia Island real estate agent will go over your closing statement with you and discuss all charges.

There are many terms out there involved in real estate, but by making yourself aware of a few and doing your research, you can begin to understand what they mean for you. If you're almost ready to invest in a home, you may want to contact one of our real estate professionals for more information.

The terminology involved in the real estate market can be vexing for the newcomer, but if you're getting prepared to buy a home, there are a few choice words you should take some time to learn. While it's hard to learn the ins and outs in one article, here's a place to begin with five terms you may be hearing a lot of in the future.

There are many terms out there involved in real estate, but by making yourself aware of a few and doing your research, you can begin to understand what they mean for you. If you're almost ready to invest in a home, you may want to contact one of our real estate professionals for more information. We will walk you through the homebuying process.

 

All information found in this blog post is deemed reliable but not guaranteed. Real estate listing data is provided by the listing agent of the property and is not controlled by the owner or developer of this website. Any information found here should be cross referenced with the local county and state organizations.