Top Ten Terms for Loans

Dated: June 2 2020

Views: 187

Top Ten Terms for Loans Everyone knows that you should never sign on the dotted line without reading the contract.  This same term applies to loans.  Signing a loan without knowing the terms and what everything means can be detrimental to your finances, credit and future investments.  Before you sign on the dotted line, make sure that you know these terms and how they will apply to you.  

1. Interest rate

The interest rate is the percentage of your loan that is added on every month. The percentage will vary according to the economy and will make a difference in your payments.

2. Fixed Rate

A fixed rate will be an interest rate that stays at the same percentage throughout the entire period of your loan.

3. Variable Rate

A variable rate will change according to the economy and the charts that are stating what the rates should be for interest. A variable rate usually changes every year and adjusts according to a specific given range of percentages.

4. Principal

The principal is what you will be paying on your actual house. Whatever you pay on your principal is what you will see in the end as your investment.

5. Escrow

This is similar to a savings account of your loan. Whatever you put in escrow will accumulate without paying directly into the loan. At the end of the term you can use it to finish paying off the loan or to invest in another loan.

6. Title

A title will be what you get to your home after it is officially yours, stating that the property belongs to you.

7. Deed

A deed will most often be used as a title for a commercial area. Instead of giving ownership it shows that the property is leased to the one who is using it as a business.

8. Home Equity

This is a loan or line of credit that you can get for your home. It will finance up to eight percent of your other loan and get paid back later. This helps if you want to consolidate loans or invest more into the property.

9. Appraisal
After an inspection of the home is made, an appraisal will be made.  This will be an estimated value of what the home is worth.  

10. Equity


This will be the actual amount of the property that you own. Most likely, it is what is being paid off of your principal amount. Once you know some of these basic terms, you will be able to expand on your knowledge and find the exact loan that will fit your needs. These basic definitions will help you in making the right decision for the type of loan that you want.


Buyers Ask: What Are The First Steps in the Home-Buying Process


Homes for Sale in Lafayette

Abbeville
Breaux Bridge
Carencro
Church Point
Crowley
Duson
Maurice
Youngsville

==============================

Buying? ➡️ bit.ly/3bsanGy

FREE Home Evaluation ➡️ bit.ly/3eEQWvQ

==============================

Ted M. Daigle eXp Realty

Ph. 337-243-6108

ted.daigle@exprealty.com

1720 Kaliste Saloom Rd Suite B-2

Lafayette, Louisiana 70508

Ted M. Daigle | Realtor

995694847

www.337homesearch.com

==============================

 

www.listingwithted.com

Blog author image

Ted Daigle

About Ted Daigle – Realtor Growing up in Church Point, LA instilled values of hard work and dedication, which has carried over into every aspect of his life, including real estate. This Lafayette r....

Latest Blog Posts

Homes Coming Soon and Just listed in Acadiana

44 Listings Coming Soon  - Click

Read More

Inexpensive Ways to Beautify Your Bathroom

Inexpensive Ways to Beautify Your BathroomThere are inexpensive ways to make your bathroom more beautiful even if you can't afford a full remodeling. These are some ideas for getting a new look on a

Read More

Protect Your Family Home From Pet Damage

Protect Your Home From Pet DamagePets bring so much joy to our lives, but over time they can also cause a lot of damage around the home. Even the most well-behaved pets can create some mischief

Read More

Why Am I Being Asked to Make Repairs?

Why Am I Being Asked to Make Repairs?Most people eager to sell their home in Acadiana want to do so as is, with as little effort involved as possible. However, if you are in any way handy with home

Read More