Concepts and terminologies related to real estate are often confusing and misunderstood. Nevertheless, they are very simple concepts when properly understood. In Evos Buildcon, one of our core ideologies is customer centricity, so, In these upcoming blogs we will cover some most frequently used real estate jargons that you must know in 2022 before you even plan on investing in the real estate sector.
So, Make sure to keep your pen and paper ready because here comes some of the most interesting terminologies of Real estate sector.
When a buyer or seller wants to modify an existing contract, they can add an addendum that details the specific changes they would like to make. The rest of the contract remains unchanged.
Signatures are required from all parties to the negotiation for an addendum.
In an addendum, portions of the original document are amended, clarified, or nullified.
Apart from Real Estate, addendum is also commonly used in wills, lease agreements and insurance policies.
Adjustable-rate mortgage (ARM)
Home loans with variable interest rates are called adjustable-rate mortgages (ARMs). An ARM’s initial interest rate is fixed for a short period, and then the rate applied on the unpaid balance resets cyclically, usually once a year or more frequently depending on the lender’s policies.
The interest rate and/or payment caps on ARMs generally limit how much they can increase per year or over the life of the loan.
The adjustable-rate mortgage (ARM) can also be referred to as a floating rate mortgage or a variable-rate mortgage.
A home’s appreciation is how much its value grows over time. To find a property’s likely appreciation rate, add one to the annual appreciation rate, raise that number to the power of the number of years you wish to estimate, then multiply it by the property’s current value.
A property’s value is calculated based on its monetary value when taxed. This price is known as the assessed value. The assessment is done annually, taking into account factors such as the value of the property and market conditions in the surrounding areas.
In most cases, the assessed value is less than the fair or actual market price.
The purpose of a bridge loan is to finance the purchase of another home using a short-term loan secured against the homeowner’s property. Typically, they are taken out for a period of a few weeks up to three years.
It is mandatory to sell the existing home within a year after taking out a bridge loan in India and to repay the loan. EMI amounts are determined by the remaining balance in the account. Interest rates on bridge loans are extremely high so be careful while taking the decision of taking a Bridge Loan.
So, Let us know how this article was, did you learn something new? Wait for the next article to learn some new jargon. Now that you have learned some new concepts, ready to invest in real estate? We have a huge range of offerings when it comes to the best apartments in Bhubaneswar at the best location. Come have a look at the offerings of the best real estate company in Odisha.