If you're a first-time homebuyer or seller, you may not be familiar with the lingo used during the process. Even those who've been involved in a real estate transaction can usually do with a little brushing up. While this list isn't comprehensive, it'll get you started with some of the real estate terms you might run into.

1. Adjustable Rate Mortgage
   This is a conventional loan where the interest rate can change at five-, seven- or ten-year intervals. Adjustable rates may not work for those who plan to stay in a home for a while, as rates can zoom upwards quite suddenly.
2. Amortization
   Amortization combines interest and principal in payments so a homeowner can build more equity in the loan, rather than pay off the interest at first.
3. Annual Percentage Rate
   The APR is how much interest is charged on your loan yearly.
4. Appraisal
   To get a loan, your home must be appraised. The appraiser examines the property and evaluates the sale price compared to other homes in your area.
5. Closing Costs
   Typically, these costs are 2-5 percent of the total purchase price of a home and must be paid by the homeowner by the closing date.
6. Contingencies
   These are conditions that must be met before the purchase of the home can be finalized. Typical contingencies are that a home must be appraised or receive a favorable inspection.
7. Equity
   Equity is how much of your home you own, or rather, how much principal you've paid. The more equity -- that is, the more you pay off --the greater your ability to make it work for you. For instance, you can refinance based on the equity you built.
8. Escrow
   This account is set up by the lender to receive monthly payments from the buyer.
9. Home Warranty
   A home warranty is a protection for the buyer against future expensive problems, such as HVAC issues or plumbing.
10. Fixed-Rate Mortgage
    In this type of loan, the interest is the same throughout the loan. This type of loan is usually preferred because of its reliability.
11. Inspection
    Once a potential buyer makes an offer, a home inspection will be necessary. The cost of an inspection is likely to be a few hundred dollars. Typically, an inspector will check plumbing, appliances, foundation, and other features to ensure they are up to code. The results of the inspection will affect the final price. Failure to perform an inspection can be costly to the home buyer.
12. Listing Agent
    A listing is a home for sale, so the listing agent is the one who represents the seller. The buyer's agent represents the buyer.
13. Offer
    The offer is the initial price a prospective buyer offers to the seller. The seller has options of accepting, rejecting, or countering with another offer.
14. Principal
    The principal is how much the buyer borrows to buy the home. It is combined with interest to gauge the monthly mortgage payment.
15. Second Mortgage
    Second mortgages allow property owners to borrow against the home's value. They are given in a line of credit or a lump sum.
16. Short Sale
    A short sale refers to the homeowner selling property for less than the amount owed on a mortgageandmust be approved by the lender.

Our real estate agents can help you learn more about buying or selling a Northern New England home. Contact us today.