Real Estate Glossary

Realtor Language: Glossary

NH real estate agencies Find some of the common used terms in our Real Estate Glossary – e quick refresher in Real Estate. Ask us about NH Realtors or share your NH Realty comments. To feature your NH Real Estate, contact us.

Real Estate Glossary

Agent – An individual who represents a seller, a buyer or both in the purchase or sale of real estate.

Amortization – The schedule of loan payments that establishes the amount of payment to be applied to the principal and the amount to be applied to interest, usually on a monthly basis, for the full term of the loan.

Annual Percentage Rate (APR) – The TOTAL interest rate of a mortgage, including the stated loan interest as well as any upfront interest paid in securing the loan. The APR will invariably differ from the mortgage rate quoted due to the inclusion of these items.

Appraisal – An estimate of value of a real estate property by a professional third party, such as a real estate appraiser. Virtually all non-owner financed mortgages will require an appraisal and is generally paid for by the buyer.

Adjustable Rate Mortgage (ARM) – A mortgage in which the Interest rate is adjustable, meaning that the rate can go up or down according to prevailing financial market conditions.

Assessment – The value of a property as determined by the local tax jurisdiction which is used to determine the amount of your property taxes.

Buyer’s Agent – A real estate agent that has made an agreement to represent the buyer exclusively, rather than the seller.

Comparable Market Analysis (CMA) – A comparison of the prices of similar houses in the same general geographic area. A CMA is used to help determine the value of a property, either for a seller or a buyer.

Closing – The process that affects the final transfer of the deed from the seller to the buyer, as well as finalize all aspects of the mortgage of the property.

Closing Costs – Funds needed at the time of closing (separate from and in addition to the down payment). Loan origination fees, discount points, attorney fees, recording fees and pre-paids are some items that may be included. They often will total from 3% to 5% of the price of the home, payable in cash.

Contingencies – These are conditions written into real estate offers and contracts to prevent a buyer from being forced to buy a house that is unsatisfactory–either structurally or financially.

Condominium – Housing where the owner owns only the unit in which he or she lives–from the interior walls inward, generally–as well as a portion of the common area.

Debt to Income Ratio – The ratio of a borrower’s total of debt as a percentage of their total gross income.

Deed – The document that, when recorded with your local government, determines ownership of a property. It is transferred from seller to buyer at closing.

Earnest Money – Also known as a deposit. Earnest money is money that is submitted with an offer to purchase which indicates a buyer’s seriousness and good faith. In virtually all cases, earnest money will need to be submitted at the time of the offer. It remains in escrow until the time of closing, at which time it becomes part of the down payment.

Equity – The difference between the value of a property and the total of any outstanding mortgages or loans against it.

Escrow – Funds held in reserve both prior to closing (for example the earnest money and deposit) by a third party and after closing by the mortgage company to pay future taxes and homeowners insurance. In some areas, "escrow" also refers to the closing process.

Fixed Rate Mortgage – A mortgage loan where the interest rate is established at its origination and continues unchanged through the life of the loan.

FSBO – For Sale By Owner. Real Estate that is sold without the assistance of an Agent. FSBO can refer to both the individual selling the property or the property itself.

Foreclosure – The process in which a lender takes back property from a defaulting owner and re-sells it.

Homeowner’s Association – An owners group, whether in a condominium, townhouse or single family subdivision that establishes general guidelines for the operation of the community, as well as its standards.

Inspection – A whole house inspection of a home being considered for purchase which looks for defects in the property.

Interest – That portion of a mortgage payment that is the "charge" for using the lender’s funds.

Lien – A legal claim against a piece of property that can prevent it from being sold unless the lien is satisfied (paid off). Liens can be filed by unpaid contractors or other debtors in a legal process so that they will be paid when a property is sold.

Listing – A property for sale by a real estate brokerage or agent.

Loan Origination Fee – A charge imposed by the lender, payable at closing, for processing the loan.

Lock-in – An agreement by the lender at the time of mortgage application or shortly thereafter, to write the mortgage at a specific interest rate, whether rates rise or fall up to the date of closing. Obviously a good move if rates are rising, not so good if they are falling. Lock-ins have specific expiration dates, such as 30, 60 or 90 days in the future.

LTV (Loan to Value) – The ratio of the amount of the mortgage as a percentage of the value of the property.

MLS (Multiple Listing Service) – Computerized listings of all the properties for sale by real estate brokerages in a given geographical area, such as a state.

PMI (Private Mortgage Insurance) – Required on virtually all conventional loans with less than 20% downpayment. Although the payments for PMI are included in your mortgage payment, it protects the lender should you default on the loan. On FHA loans, you will pay a MIP (Mortgage Insurance Premium) which accomplishes the same purpose.

Points – 1 point is equal to 1% of the loan value, paid at closing. Points can be loan origination fees or "discount points" which reduce the interest rate of the loan (you are actually paying a finance charge up front). When a lender, for example, quotes a rate of 8 1/2% with 1 + 1 points, 1 point is for the origination fee and 1 point is for the discount fee.

Prequalification – The first stage of a mortgage application where the lender will run a basic credit report and determine your debt to income ratio in order to see how much of a mortgage you qualify for.

Pre-paids – Paid for (in cash) at closing for such items as homeowners insurance for one year and real estate taxes for several months.

Principal – The amount borrowed for a mortgage loan. Your monthly mortgage payment will be applied to both the interest and the principal (the lions share will go to the interest portion in the first years of the loan).

Property Tax – An annual or semi-annual tax paid to one or more governmental jurisdictions based on the amount of the property assessment. Generally paid as part of the mortgage payment.

Recording – The act of entering deed and/or mortgage information into public record with your local government.

Sub-Agent – A real estate agent who is working with a buyer but who represents the seller in the transaction.

Title Insurance – Protects your title–your ownership rights–from claims against it. Paid at closing, title insurance may be the responsibility of the buyer, the seller, or both, depending on what is traditional in your area.

Warranty – Covers either most of the house in a new home, or selected items within the home. Warranties can vary widely and are optional in used homes.

Zoning – Laws that govern specifically how a zoned area can be used. For example, an area may be zoned for single family residential, condominiums, commercial or retail, or a mix of two or more uses.

Badger, Peabody & Smith Realty | 1-603-823-6700
New Hampshire, Western Maine & Eastern Vermont Real Estate Services. With eight conveniently located offices, we offer full-service real estate services to the Great North Woods, Mt. Washington Valley, White Mountains, Central, Lakes Region, and the Upper Valley. In addition, we specialize in the Northeast Kingdom of Vermont and Western Maine. We also have a team dedicated to commercial real estate. If you are looking for commercial lease space in Plymouth, a development opportunity in Littleton, a hospitality property for sale in North Conway, or a business opportunity in Berlin, we can assist. Visit our website to view listings.
Badger Peabody Smith Realty

Roper Real Estate, 8 Davos Way, 2nd Floor, Waterville Valley NH 03215 | 603-236-3636
Waterville Valley is an oasis in the White Mountain National Forest. Only 2 hours from Boston, it is the first major resort off of Interstate 93. We know the market in Waterville because we live here in Waterville and we love it. As members of the NH MLS and NH Board of Realtors, we have an extensive mailing list and email database of people active in the real estate market in Waterville Valley. See a virtual tour online at our website.
Visit Roper Real Estate Waterville Valley Website

New Hampshire Log Cabin Homes | 1-774-228-2898
NH LOG CABIN HOMES serves all of Massachusetts and New Hampshire with custom built cedar log homes to fit your lifestyle and budget. Our first quality Moosehead Cedar Log Homes are available in several styles, prices, and are delivered pre-cut to save you time and money. The insulation factor of White Cedar is among the highest of any wood species. Call 1-774-228-2898 for Naturally environmentally safe housing for you and your family.
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Adam Dow, ABR - Keller Williams - Dow Realty Group, 136 South Main Street, Wolfeboro, NH 03894 | 603-569-4664
My properties include New Hampshire Lakes Region Real Estate; homes, inns, business and investment property, waterfront, luxury vacation homes, condos, cottages, land, lots and more. Born in Wolfeboro, NH - 10th generation in the Lakes Region. Search all Lakes Region Listings by Town or Lake.
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Peabody & Smith Realty, 383 Main St., Franconia NH 03580 | 603-823-5700; 11 Riverglen Lane, Littleton NH 03561 | 603-444-1294; 9 Remick Lane, Bretton Woods, NH 03575 Ph: 603-278-1140; 85 Main St., Plymouth, NH 03264 | 603-238-6990
Specializing in White Mountains real estate: residential, land and commercial offerings, in the greater Littleton, Franconia, White Mountain area. Our team approach in servicing our clients has given us "A Reputation for Results".
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Berkley, Veller & Greenwood Country Realtors, 119 Western Ave., Brattleboro, VT 05301 also 118 Route 100, West Dover, VT 05356 | 802-254-6400
Berkley, Veller & Greenwood Country Realtors has access to the largest selection of real estate listings in southeastern Vermont and southwestern New Hampshire. Offices are located in Brattleboro and Mount Snow, Vermont. The area’s leading independent full service real estate company serving Windham County in Southern Vermont and Cheshire County in Southern New Hampshire.
Visit Berkley Veller Greenwood Country Realtors Website

Adam Dow, ABR - Keller Williams - Dow Realty Group, 136 South Main Street, Wolfeboro, NH 03894 | 603-569-4664
My properties include New Hampshire Lakes Region Real Estate; homes, inns, business and investment property, waterfront, luxury vacation homes, condos, cottages, land, lots and more. Born in Wolfeboro, NH - 10th generation in the New Hampshire Lakes Region. Search all Lakes Region Listings by Town or Lake.
Visit Adam Dow Group - Keller Williams Real Estate - Wolfeboro, NH

Milestone Team - Better Homes and Gardens Real Estate, 224 Main Street, New London, NH 03257 | 603-526-4116
Teamwork means working together to accomplish a goal. The Better Homes and Gardens Real Estate - Milestone Team can help to insure that you will achieve your goals. Let us put our proven Team to work for you! We brainstorm, share problems and successes, look to each other for advise and opinion...help each other all the time. For our clients and customers, this means that there is always someone available to make life easier!
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CG Shepherd Realty LLC, Grantham: 603-863-3278 Hanover: 603-643-3278 Lebanon: 603-448-3278, 120 Route 10S, (Sawyer Brook Plaza), Grantham, NH 03753 & 199 Heater Rd., Lebanon, NH 03766
CG Shepherd Realty, LLC has knowledgeable local Realtors who will represent your interests enthusiastically! Learn all the local secrets and traditions of the Upper Valley, Dartmouth/Lake Sunapee, Eastman and Vermont regions by contacting us or visiting our website.
CG Shepard Realty Website

Vanessa Stone Real Estate, 468 US Route 4 Unit 7, Enfield, NH 03748 & 195 Mechanic St., Lebanon, NH 03766 | 603-632-5757
Vanessa Stone Real Estate is Your Home for Upper Valley NH Real Estate. With 30 plus years of experience in the Real Estate business, Vanessa and her team can help you find the New Hampshire property you are searching for. Whether it be a home, land, a mobile home in a park, rental, an investment property, or waterfront property. Visit our website to receive local real estate listing updates via email.
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