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Real Estate Matters

Southwestern Architectural Terms

Adobe Special high silicon mud that is mixed with straw or sage to create blocks approximately 18 inches square. The mud is used also as a mortar between the blocks and the plaster to smooth the surface.

Banco Shaped benches built into or jutting out of the wall. Usually made of Adobe on frame wire.

Canales Water canals or run-offs on the "flat" or pueblo roofs. They may be just holes at roof level or the may be of carved wood with tin or copper liners to spout the water from the roof. Seen on contemporary New Mexican Style construction.

Corbel A carved block at the top of a vertical pole or wood stanchion. It helps spread the weight on the pole and also adds a very pleasant decorative touch.

Evaporative Cooler (Swamp Cooler) Due to low humidity, this form of cooler works efficiently in the dry atmosphere of New Mexico. It cools by passing water over pads which cool the air. This air is then circulated through the house. Unlike an refrigerated air conditioning system, you control air flow by slightly opening windows to allow the air to flow out of the house.

Kiva Fire Place A rounded plaster style of fire place. Used both inside and outside the home. Originally used by the Native Americans and early settlers for baking bread or for a ceremonial meeting "in the round" below ground.

Latillas Small pieces of wood laid on the vigas or beams to become the roof support. Natural latillas are sticks or branches. Man-made, finished latillas are smoothed and uniform and usually are carved out of a 4 x 8 sheet of wood.

Nichos A ledge or cut into a wall used for displaying or storing items. In newer homes, they are often lighted.

Northern New Mexico Style Home "Conventional-looking" home with a pitched metal roof. Some homes have gables. Reminiscent of days past, they are a blend of southwestern details with a Victorian influence. Authentic examples of this style from the turn of the century still exist. The high pitched metal roof is pleasing to the eye as well as for its original function of protecting from heavy snow.

Pueblo Style Home Elegant and authentic southwestern homes combine the native pueblo styling typical of New Mexico with the southwest details so popular in today's homes. These homes have an adobe or stucco-type finish, flat roof, rounded corners. Many have vigas protruding through the walls at the roof line. Kiva fireplaces, viga beamed ceilings, nichos and southwestern tile are some of the popular details in this style.

Portal A covered patio or entry.

Territorial Style Home Very similar to the Pueblo Style home with an adobe or stucco-type finish and a flat roof. In this style, however, one will see squared corners, usually white trim over the windows and doors, and detail at the roof line.

Viga The beam used for roof supports. They are usually "stripped" tree trunks in a natural finish. They can also be square and of washed wood.

Glossary of Real Estate Terms (Standard Real Estate Terms)

Adjustable Rate Mortgage (ARM) A mortgage with an interest rate that changes over time in line with movements in the index. ARMS are also referred to as AMLs (adjustable mortgage loans) or VRMs (variable rate mortgages).

Adjustment Period The length of time between interest rate changes on an ARM. For example, a loan with an adjustment period of one year is called a one-year ARM, which means that the interest rate can change once a year.

Amortization Repayment of a loan in installments of principal and interest, rather than interest-only payments.

Annual Percentage Rate (APR) The total finance charge (interest, loan fees, points) expressed as a percentage of the loan amount.

Assumption of Mortgage A buyer’s agreement to assume the liability under an existing note that is secured by a mortgage or deed of trust. The lender must approve the buyer in order to release the original borrower (usually the seller) from liability.

Balloon Payment A lump sum principal payment due at the end of some mortgages or other long-term loans.

Binder Sometimes known as an offer to purchase or an earnest money receipt. A binder is the acknowledgment of a deposit along with a brief written agreement to enter into a contract for the sale of real estate.

Cap The limit on how much an interest rate or monthly payment can change, either at each adjustment or over the life of the mortgage.

CC&R’s Covenants, conditions and restrictions. A document that controls the use, requirements and restrictions of a property.

Certificate of Reasonable Value (CRV) A document that establishes the maximum value and loan amount for a VA guaranteed mortgage.

Closing Statement The financial disclosure statement that accounts for all of the funds received and expected at the closing, including deposits for taxes, hazard insurance, and mortgage insurance.

Condominium A form of real estate ownership where the owner receives title to a particular unit and has a proportionate interest in certain common areas. The unit itself is generally a separately owned space whose interior surfaces (walls, floors and ceilings) serve as its boundaries.

Contingency A condition that must be satisfied before a contract is binding. For instance, a sales agreement may be contingent upon the buyer obtaining financing.

Conversion Clause A provision in some ARMS that enables you to change an ARM to a fixed-rate loan, usually after the first adjustment period. The new fixed rate is generally set at the prevailing interest rate for fixed-rate mortgages. This conversion feature may cost extra.

Cooperative A form of multiple ownership in which a corporation or business trust entity holds title to a property and grants occupancy rights to shareholders by means of proprietary leases or similar arrangements.

CRB (Certified Residential Broker). To be certified, a broker must be a member of the National Association of Realtors@, have five years experience as a licensed broker and have completed required Residential Division courses.

CRS Certified Residential Specialist.

Due-On-Sale Clause A clause that requires full payment of a mortgage or deed of trust when the secured property changes ownership.

Earnest Money The portion of the down payment delivered to the seller or escrow agent by the purchaser with a written offer as evidence of good faith.

Escrow A procedure in which a third party acts as a stakeholder for both the buyer and the seller, carrying out both parties’ instructions and assuming responsibility for handling all of the paperwork and distribution of funds.

FHA Loan A loan insured by the Federal Housing Administration (of the Department of Housing and Urban Development).

Federal National Mortgage Association (FNMA) Popularly known as Fannie Mae. A privately owned corporation created by Congress to support the secondary mortgage market. It purchases and sells residential mortgages insured by FHA or guaranteed by the VA, as well as conventional home mortgages.

Fee Simple An estate in which the owner has unrestricted power to dispose of the property as he wishes, including leaving by will or inheritance. It is the greatest interest a person can have in real estate.

Finance Charge The total cost a borrower must pay, directly or indirectly, to obtain credit according to Regulation.

Graduated Payment Mortgage A residential mortgage with monthly payments that start at a low level and increase at a predetermined rate.

GRI Graduate, Realtors Institute. A professional designation granted to a member of the National Association of Realtors@ who has successfully completed courses covering Law, Finance and Principles of Real Estate.

Home Inspection Report A qualified inspector’s report on a property’s overall condition. The report usually includes an evaluation of both the structure and mechanical systems.

Home Warranty Plan Protection against failure of mechanical systems within the property. Usually includes plumbing, electrical, heating systems and installed appliances.

Index A measure of interest rate changes used to determine changes in an ARMs interest rate over the term of the loan.

Joint Tenancy An equal undivided ownership of property by two or more persons. Upon the death of any owner, the survivors take the decedent’s interest in the property.

Lien A legal hold or claim on property as security for a debt or charge.

Loan Commitment A written promise to make a loan for a specified amount on specified terms.

Loan-To-Value Ratio The relationship between the amount of the mortgage and the appraised value of the property, expressed as a percentage of the appraised value.

Margin The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.

Mortgage Life Insurance A type of term life insurance often bought by home buyers . The coverage decreases as the mortgage balance declines. If the borrower dies while the policy is in force, the mortgage debt is automatically covered by insurance proceeds.

Negative Amortization Negative amortization occurs when monthly payments tail to cover the interest cost. The interest that isn’t covered is added to the unpaid principal balance, which means that even after several payments you could owe more than you did at the beginning of the loan. Negative amortization can occur when an ARM has a payment cap that results in monthly payments that aren’t high enough to cover the interest.

Origination Fee A fee or charge for work involved in evaluating, preparing, and submitting a proposed mortgage loan. The fee is limited to 1 percent for FHA and VA loans.

PITI Principal, Interest, Taxes and Insurance.

Planned Unit Development (PUD) A zoning designation for property developed at the same or slightly greater overall density than conventional development, sometimes with improvements clustered between open, common areas. Uses may be residential, commercial or industrial.

Point An amount equal to 1 percent of the principal amount of the investment or note. The lender assesses loan discount points at closing to increase the yield on the mortgage to a position competitive with other types of investments.

Prepayment Penalty A fee charged to a borrower who pays a loan before it is due. Not allowed for FHA or VA loans.

Private Mortgage Insurance (PMI) Insurance written by a private company protecting the lender against loss if the borrower defaults on the mortgage.

Purchase Agreement A written document in which the purchaser agrees to buy certain real estate and the seller agrees to sell under stated terms and conditions. Also called a sales contract, earnest money contract, or agreement for sale.

Realtor@ A real estate broker or associate active in a local real estate board affiliated with the National Association of Realtors@.

Regulation Z The set of rules governing consumer lending issued by the Federal Reserve Board of Governors in accordance with the Consumer Protection Act.

Tenancy in Common A type of joint ownership of property by two or more persons with no right of survivorship.

Title Insurance Policy A policy that protects the purchaser, mortgagee or other party against losses.

VA Loans A loan, made by a private lender, that is partially guaranteed by the Veterans Administration.


Public Service Provider Sites

New Mexico Gas Company

Public Services Company of New Mexico (PNM)

Comcast (Cable TV and Cable Modem Internet Access)

Qwest (Telephone and related services)

Fidelity National Title


 

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