Closing costs include the fees required for purchasing a home. In contrast, a down payment is the initial amount the borrower must pay to purchase a home. Closing costs are not the same as a down payment. In real estate transactions, …
A lessor is a property owner who rents their property to a tenant, while a lessee is a tenant who pays to rent the property. Each party must sign a contract outlining the terms of their lease agreement. Real estate …
Loan origination fee is the fee required during the first stage in the mortgage lending process. The process starts when the borrower submits documents for pre-qualification. To understand the mortgage process, it is essential to understand the concept of loan origination. …
Discount points, also known as mortgage points, are the amount the borrower pays to the lender to reduce the interest rate on their loan. If you’re interested in real estate, you must understand how mortgage points work, as they are …
Usury is the practice of lending money to borrowers at exorbitant interest rates. This predatory lending tactic is against the law, as it forces homebuyers into paying high interest rates on loans. Because usurious practices affect individuals looking to borrow money …
Co-borrowers and cosigners are both responsible for loan repayment, but a co-borrower has shared ownership of the asset, while a cosigner does not. If you’re a real estate student, you must understand the difference between a primary borrower, a co-borrower, …