Speaking of Real Estate Page 2 - featured article

Homeowner’s Insurance: Also called property insurance, protects you from damages to your property and possessions. Premiums are based on: the history of claims in your neighborhood; your personal claims history; value of your home – either the replacement value of your home or its actual cash value; deductible amount you pay before the insurer begins to pay your claim; and safety measures such as fire detection, sprinkler and theft-deterrent. Damage from storms, lightning, fire and smoke is generally covered in a basic homeowner’s insurance policy, but damage from earthquakes or floods is generally excluded.

Interest Rate: A measure of the cost of borrowing. This rate determines how much money will be paid back to the lender in addition to the amount borrowed.

Line Haul Charges: Charges for the vehicle transportation portion of your move. These charges apply in addition to the additional service charges.

Long Carry: An added charge for carrying articles excessive distances between the mover’s vehicle and your residence.

Mortgage: Long term loans, usually spanning 15 or 30 years, directly tied to a home or other real estate property. While the borrower has ownership and use of the property, he or she does not hold the actual title until the mortgage loan has been paid back in full.

Mortgage Broker: Many lenders use the services of a mortgage broker to perform the “Origination” of the loan - to meet with and pre-qualify the borrower, verify the credit and property aspects of the loan, and then provide it to the lender for actual funding.

Mortgage Loan: Money lent for the purpose of buying real estate. Mortgage loans are secured by the property they are used to buy. If the borrower fails to pay back a loan, the lender can seize the property in a process known as foreclosure.

Mortgage Quote: A mortgage quote is an interest rate offered to a borrower by a lender for a home loan. Mortgage rates can change hourly so make sure you find out if the mortgage quote you have been given has any expiration period. Generally mortgage quotes do not include closing costs, property taxes, insurance, and other miscellaneous costs.

Mortgage Rate: The amount of interest charged on the money lent for the purchase of a home. Mortgage rates are expressed annually as a percentage.

Order for Service: The document authorizing the mover to transport your household goods.

Order (Bill of Lading) Number: The number used to identify and track your shipment.

Peak Season Rates: Higher line haul charges that are applicable during the summer months.

Refinance: A new loan to pay off an existing loan on the same house. The new loan may have different terms, a lower interest rate or be larger than the amount of debt owed on your existing loan. In the case of the latter, you would end up with a cash surplus known as “equity take out.”

Second Mortgage: A mortgage on real estate which has already been pledged as collateral against another mortgage, the first mortgage. Typically has rights to the same real estate but those rights are subordinate to the rights of the first mortgage.

Securitization: The pooling of mortgage loans into a mortgage-backed security. The principal and interest payments from the individual mortgages are paid out to the holders of the MBS security.

Underwriting: The risk a lender would assume if a particular mortgage loan is approved. Ability and willingness to abide by the mortgage loan terms, as well as the value of the property involved, are critical to the underwriting analysis.

Valuation: The “worth” of the shipment. The valuation charge compensates the mover for assuming a greater degree of liability than that provided for in the base transportation charges.