interior design unit 3 vocab

down payment

paying part now and saving rest for regular installments

interest

amount of money paid for the use of someone else’s money

installment buying

paying for a house in a series of payments over time

security deposit

ensures owner against any financial loss caused by renter

lease

states responsibilities of lessor and lessee

renter’s insurance

protects renter against loss of possessions due to theft, fire, natural disaster

principal

total amount owed on the mortgage

equity

the money value of the home beyond the mortgage

foreclosure

legal procedure in which a lending firm takes possession of the property

credit history

record of past payments and a profile of outstanding debts

mortgage

pledge of property that a borrower gives to a lender as security for a loan to buy property

private mortgage insurance

mortgages may require this if the buyer does not have the 20% down payment

pre-approval

desirable for negotiating the purchase of the house and identifying an amount to spend

earnest money

deposit that goes along with the offer to show the seller the buyer is serious about buying the house

homeowner’s insurance

protects homeowner against potential hazards

property coverage

pays for physical damage to home

personal liability coverage

pays medical expenses for bodily injury if a visitor has an accident on property

appraisal

expert estimate of quality and value of property

title

document giving proof of property ownership upon closing the sale

deed

document showing transfer of the title from one person to another

zoning regulations

how land is used in certain areas

region

area of country or world

community

country suburb or city

neighborhood

section of community

28-30%

no more than what percent of income should be spent

FHA insured mortgage

often obtained with a smaller down payment than other mortgages

lessee

person who rents an apartment from a lessor (landlord)

closing costs

include attorney fees to the title company, appraisal fees, and survey charges

townhouse

example of attached house

manufactured housing

built in a factory on wheels and rolled to a lot