Here are a few terms you should know when buying a house:
- Down payment: This is the amount of money you pay upfront when you purchase a house. It is typically a percentage of the purchase price, and the remaining balance is paid through a mortgage.
- Mortgage: This is a loan that you take out to pay for the purchase of a house. The loan is typically repaid over a period of time, with monthly payments that include both interest and principal.
- Interest rate: This is the percentage of the loan amount that you will pay in interest. The interest rate can affect your monthly mortgage payments and the total cost of your loan.
- Escrow: This is a process in which a neutral third party holds onto funds or documents on behalf of the buyer and seller during a real estate transaction. The funds or documents are released once all of the conditions of the sale have been met.
- Closing costs: These are the costs associated with completing the purchase of a home, including things like fees for a home inspection, title search, and appraisal. Closing costs are typically paid at the time of closing, which is when the sale is finalized.
