Welcome back to RealtyMyths word Wizard! Let’s talk about some real estate terms.
Title Insurance: Compensates the buyer or lender if title defects, liens or competing claims of ownership on a property arise after closing.
Rate Lock: An agreement between a borrower and a lender that allows the borrower to lock in an interest rate on a mortgage for a specified period of time.
PMI: Private Mortage Insurance. Insurance that protects a lender against loss if a borrower defaults on a loan. PMI is required for conventional loans that have less than a 20 percent down payment.
Equity: The amount of money a buyer pays at closing toward a home purchase.
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