Term
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Definition
Amount made over and above cost.
Profit or loss on sale/Total Cost = Percent Profit or Loss. |
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Term
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Definition
Regular, Equal payments that include P&I.
AKA Level Payment Plan |
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Term
| Mortgage Amortization Steps |
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Definition
1) Principal Balance * Annual Interest / 12 = First Months Interest
2)Monthly Mortgage Payment - First Month's Interest = Payment on Principal
3) Beginning Principal Balance - Principal Payment = New Principal Balance.
Repeat |
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Term
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Definition
Mortgage Application
Survey
Appraisal
Title Insurance
Closing Documents
Property Inspections
Pre-Closing Inspection |
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Term
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Definition
| Accurate accounting and delivery of all monies, deposits, drafts, mortgages, conveyances, leases or other documents plus a summary of all debits and credits involved. |
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Term
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Definition
| Divide various charges adn credits between buyer and seller. |
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Term
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Definition
Based on Statutory Month Method. All Months have 30 days and 360 days in the year.
Day costs = Cost of item/12/30 |
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Term
| Prporation 365 Day Method |
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Definition
Actual Number of days in proration period.
Daily costs = Costs / number of days |
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Term
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Definition
Taxes are paid in arrears (at the end of the year)
Therefore, debit seller number of days on property and credit buyer for those days. Remember, taxes will be paid at the end of the year. |
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Term
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Definition
State Documentary Stamp Tax on Deeds(Debit Seller) $.70/$100 on the full purchase price.
State Documentary Stamp Tax on Notes (Debit Buyer) $.35/$100 on all executed notes and promises.
State Intangible on New Mortgages (Debit Buyer) $.002/$1 On new mortgages. |
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Term
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Definition
Seller (Grantor) - Deed
Buyer (Mortgagor) - Mortgage and Note. |
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Term
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Definition
Buyer (Grantee) - Deed Recording
Seller (Grantor) - Deed Prep |
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