Real Estate Terms of the Week

Annual Percentage Rate (APR)  
Calculated by using a standard formula, the APR shows the cost of a loan; expressed as a yearly interest rate, it includes the interest, points, mortgage insurance, and other fees associated with the loan.

Point  
An amount equal to 1 percent of a mortgage (not sale price) that is paid at closing. A point is usually considered to be prepaid interest — interest paid up front that represents the difference between the interest being charged on the mortgage and the rate the lender wants to receive.

Pre-Qualification Letter  
A letter from a mortgage lender that states that you’re pre-qualified to buy a home, but does not commit the lender to a particular mortgage amount.

Source: GMAC Real Estate 

Jill Denton ~ Hometown GMAC Real Estate and Changing Spaces Interior Redesign & Staging

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