Real Estate

The 11th District Cost of Funds Index (COFI) is a monthly weighted average of the interest expenses incurred by financial institutions in the 11th Federal Home Loan Bank District, which is used primarily to determine interest rates on adjustable-rate mortgages.

A 5/1 Hybrid ARM is a type of mortgage that features a fixed interest rate for the first five years, followed by an adjustable rate that resets every year thereafter.

The American Dream is a national ethos of the United States, symbolizing the opportunity for prosperity and success through hard work and determination.

Debt-Service Coverage Ratio (DSCR) is a financial metric used to determine a borrower's ability to cover debt obligations with its operating income.

Delivered-at-Place (DAP) is an international trade term where the seller agrees to deliver goods to a specified location, assuming all transportation costs and risks until the goods are ready for unloading by the buyer.

Earnest money is a deposit made by a buyer to a seller, demonstrating commitment to a real estate transaction.

The Environmental Protection Agency (EPA) is a U.S. federal agency responsible for protecting human health and the environment by enforcing regulations based on laws passed by Congress.

Escrow is a financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction.

A feasibility study is an analysis used to determine the viability of a project or investment before significant resources are committed.

An FHA loan is a mortgage insured by the Federal Housing Administration, designed to help lower-income and first-time homebuyers purchase a home.

A home equity loan is a type of secured loan where borrowers use the equity of their home as collateral to receive a lump sum of money.

A homeowners association (HOA) is an organization in a subdivision, planned community, or condominium that makes and enforces rules for the properties and their residents.

A Homeowners Association Fee (HOA Fee) is a periodic charge collected by a homeowners association from its members to fund the maintenance and improvement of properties within the association.

A homestead exemption is a legal provision that reduces the property tax burden on a homeowner's primary residence by exempting a portion of its value from taxation.

A housing bubble occurs when property prices significantly inflate beyond their intrinsic values due to high demand, speculative trading, and easy credit, eventually leading to a sharp decline when the bubble bursts.

Joint tenancy is a form of property co-ownership where two or more individuals hold equal shares of the property with rights of survivorship, meaning that upon the death of one tenant, their share automatically passes to the surviving tenants.

Joint Tenants with Right of Survivorship (JTWROS) is a type of co-ownership of property where co-owners have equal shares and the survivor inherits any deceased co-owner's share automatically.

A jumbo loan is a type of mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA).

A Juris Doctor (JD) is a professional graduate degree in law, qualifying the holder to take the bar exam and practice law in the United States.

A kickback is an illicit payment made to someone in return for facilitating a transaction or appointment, often seen as a form of bribery.

A kiosk is a small, often temporary, standalone booth used in high-traffic areas for marketing or selling goods and services.

A Letter of Intent (LOI) is a document outlining the preliminary agreements between two parties before a formal contract is finalized. It is commonly used in real estate and business transactions to clarify the terms of a deal.

The Loan-to-Value Ratio (LTV) is a financial metric used by lenders to assess the risk of a loan by comparing the amount of the loan to the value of the asset securing the loan.

A Memorandum of Understanding (MOU) is a non-binding agreement between two or more parties outlining the terms and details of an understanding, including each parties' requirements and responsibilities.

Net Operating Income (NOI) is a calculation used to analyze the profitability of income-generating real estate investments, representing the total income a property generates minus all reasonably necessary operating expenses.

A Non-Disclosure Agreement (NDA) is a legally binding contract that establishes a confidential relationship between parties, ensuring that sensitive information is not shared with others.

Overhead refers to the ongoing business expenses not directly attributed to creating a product or service.

Real estate refers to land along with any permanent improvements attached to the land, whether natural or man-made—including water, trees, minerals, buildings, homes, fences, and bridges.

A Request for Proposal (RFP) is a document issued by an organization to solicit proposals from potential suppliers or service providers, as part of a competitive bidding process.

Tenancy in Common (TIC) is a form of property ownership where two or more individuals co-own real estate with individual, undivided interests that can be of unequal size and can be freely transferred.