Real Estate Terms

Whether you’re in the home market for the first time or the fifth, here are some useful terms to know and understand.

Adjustable Rate Mortgage (ARM) Provides an initial fixed-rate period followed by an interest rate and payment that periodically adjusts based on the current interest rate environment.
Alternative Mortgage Financing A term used to describe one of many financing options designed to help buyers who want to minimize their monthly payments during the early part of their mortgage. Examples include adjustable rate, interest rate buy-down, and interest-only mortgages.
Amortization Repayment of a mortgage loan through monthly installments of principal and interest. The monthly payment amount is based on a schedule that will allow you to own your home at the end of a specific time period (for example, 15 or 30 years).
Annual Percentage Rate (APR) Calculated by using a standard formula, the APR shows the cost of a loan. Expressed as a yearly interest rate, it includes the interest, points, mortgage insurance, and other fees associated with the loan.
Appraisal A document ordered by the lender and prepared by a qualified individual that gives an estimate of a property’s fair market value. An appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property.
Assumable Mortgage A mortgage that can be transferred from a seller to a buyer. There may be a fee and/or a credit package involved in the transfer of an assumable mortgage. Once the loan is assumed by the buyer, the seller is no longer responsible for repaying it.
Certificate of Title A document provided by a qualified source (such as a title company) that shows the property legally belongs to the current owner. Before the title is transferred at closing, it should be clear and free of all liens or other claims.
Closing Also known as settlement, this is the time at which the property is formally sold and transferred from the seller to the buyer. At closing, the borrower takes on the loan obligation, pays all closing costs, and receives title from the seller.
Closing Costs Customary costs above and beyond the sale price of the property that must be paid to cover the transfer of ownership at closing. These costs generally vary by geographic location and are typically detailed to the borrower after submission of a loan application.
Commission An amount, usually a percentage of the property sales price that is collected by a real estate professional as a fee for marketing the property and negotiating the transaction.
Commitment A written promise of a lender to a borrower to make a mortgage loan, on a specific property, under stated terms and conditions. The terns of the commitment most important to borrowers are the interest rate on the loan and expiration date of the commitment.
Conventional Loan A private sector loan that is not guaranteed or insured by the U.S. government.
Credit Report A record that documents an individual’s credit history including all past and present debts, and the timeliness of their repayment.
Deed The document that transfers ownership of a property.
Down Payment The portion of a home’s purchase price that is paid in cash and is not part of the mortgage loan.
Earnest Money Money offered by a potential buyer to show that he or she is serious about purchasing the home. It becomes part of the down payment if the offer is accepted, is returned if the offer is rejected, or is forfeited if the buyer pulls out of the deal.
Encumbrance A legal interest in a property that affects or limits the sale or transfer of property such as mortgages, leases, easements, judgments, and liens.
Equity An owner’s financial interest in a property calculated by subtracting the amount still owed on the mortgage loan(s) from the fair market value of the property.
Escrow Account A mortgage escrow account is a trust account held by a third party to pay taxes and insurance. Monthly mortgage payments may include 1/12 of annual property taxes and insurance. When the bills come due, lenders use the money in the escrow account to pay them.
Fair Market Value The price a buyer will pay and a seller will accept for a property under reasonable and ordinary conditions with complete market information. This definition assumes that neither the buyer nor seller is under any pressure to complete the transaction.
Federal Housing Administration (FHA) Assists homebuyers by providing mortgage insurance to lenders to cover most losses that may occur when a borrower defaults. This encourages lenders to make loans to borrowers who might not qualify for conventional mortgages.
Fixed-Rate Mortgages Offer the same interest rate and monthly payments throughout the entire life of the loan.
Graduated Payment Mortgage (GPM) A type of flexible-payment mortgage in which the payments increase for a specified time and then level off. Used by first-time homebuyers who expect their incomes to increase over time.
Hazard Insurance Protects homeowners against damage caused to a property by fire, wind, or other common hazards. It is required by the lender up to the amount of the mortgage to protect the lender’s security interest in the property.
Interest Rate The amount of interest charged on a monthly loan payment, usually expressed as a percentage. See PITI.
Lien A legal claim against property that must be satisfied before the property can be sold.
Loan-to-Value (LTV) Ratio A percentage calculated by dividing the amount borrowed by the price or appraised value of the home to be purchased. The higher the LTV, the less cash a borrower is required to pay as down payment. Example: A $150,000 mortgage on property valued at $200,000 has a LTV of 75%.
Lock-in A specific period in the loan process in which the lender guarantees a certain interest rate to the borrower with the condition that the loan is closed within a specific time.
Mortgage Insurance A policy that protects lenders against losses that can occur when a borrower defaults on a mortgage loan. Mortgage insurance is required primarily for borrowers with a down payment of less than 20% of the home’s purchase price.
Mortagee The creditor or lender in a mortgage agreement.
Mortagor The borrower in a mortgage agreement, sometimes spelled mortgager.
Origination The process of preparing, submitting, and evaluating a loan application. The process generally includes a credit check, verification of employment, and a property appraisal.
Principal The portion of the monthly mortgage payment that reflects the actual price paid for the house. As a mortgage matures over time, more of the monthly payment goes toward paying off the principal. See PITI.
PITI Principal, Interest, Taxes, and Insurance – the four elements of a monthly mortgage payment. Payments of principal and interest go directly towards repaying the loan while the portion that covers taxes and insurance (homeowner’s and mortgage, if applicable) goes into an escrow account to cover the fees when they are due.
Points Points are a form of pre-paid interest. One point equals one percent of the loan amount. By charging a borrower points, a lender effectively increases the yield on the loan above the amount of the stated interest rate.
Taxes Depending on the size of the down payment, the lender may include real estate property taxes as part of the mortgage payment. The lender passes these on to county government to pay for schools, roads and other community services.
Title Insurance Insurance that protects the lender against any claims that arise from arguments about ownership of the property. It is also available for homebuyers.
Title Search A check of public records to be sure that the seller is the recognized owner of the real estate and that there are no unsettled liens or other claims against the property.

 

The Cherry Creek Neighborhood

The neighborhood of Cherry Creek in Denver is characterized by a mixture of the old and new. The properties here are built in a range of different ages and styles, with condos, townhouses, and some single family homes to be found. There is also a blend of residential and commercial areas within Cherry Creek, with quiet tree lines streets alongside some of the most popular shopping areas in Denver.

The commercial side of Cherry Creek is focused along East First Avenue, where both the Cherry Creek Shopping Center and the Cherry Creek North shopping district are to be found. The Cherry Creek Shopping Center caters to the upscale market, with many designer boutiques and chains. Cherry Creek North is a 16 block district that contains numerous art galleries, boutiques, spas, and restaurants. It is the hub of social activity in the neighborhood, with many events taking place in the Fillmore Plaza, including Films on Fillmore during the summer, the North Ice Rink in the winter, and the local Arts Festival, which is usually held around the Fourth of July. The neighborhood has excellent transport links to the rest of the city, with four major roads and a number of bus routes servicing the area.

Courtesy of the Thirsty Lion Gastropub & Grill

Map of Cherry Creek

Parks

Congress Park

Pulaski Park

Area Information

To Downtown………… 10 min

To Cherry Creek Mall… 1 min

To I-25………….………… 8 min

Grocery Store………. Whole Foods

Walk Score: 86   Bike Score: 79

The Mayfair (Hale) Neighborhood

Nestled between some of Denver’s most sought after neighborhoods, Mayfair is a small community of friends and neighbors residing in a collection of tudors, bungalows, and ranches a short distance east of Downtown Denver. In 1885, Baron Walter Von Richthofen proclaimed Mayfair “The Beautiful Suburban Town of Denver” and advertised the area as a healthy alternative to the moral dilemmas of city living. The area now known as Mayfair became part of Denver in 1902 but was not officially named until after World War II when returning GI’s settled in the area. The area was attractive to these men and their families for many of the same reasons that Mayfair is so popular today. With its wide streets, large lots, varied architecture, and proximity to Downtown Denver, Mayfair is truly an example of urban living with a suburban feel.

City Park is located just north of Mayfair near the Denver Zoo and the Museum of Nature and Science. Mayfair has its own shopping center at 14th and Krameria Street which has been serving the community for over fifty years, while Colfax Avenue boasts its own assortment of shops and restaurants on the northern border of the neighborhood. In addition, Mayfair is just up the street from the shops, restaurants, and special events found in Cherry Creek.

Mayfair- Colfax Ave

Map Of Mayfair

Parks

Mayfair Park

Lindsley Park

 

Area Information

To Downtown………… 12 min

To Cherry Creek Mall… 7 min

To I-25………….………… 17 min

Grocery Store………. Marczyk Fine

5280’s Top of the Town 2017

It’s finally here! The article we all have been waiting for. Do you feel intimidated by all the new hot restaurants, shops, salons popping up in our beautiful city? Well have no fear! 5280 came out with an article that will help us ease into our growing city. This guide will help you find the best places to eat, drink, watch a show, workout and so much more!

Culture and Night Life

Patio

Homegrown Tap & Dough

Avanti Food & Beverage 

Theater

Black Box Repertory Ensemble 

Denver Center for the Performing Arts

Music Venue

Ophelia’s Electric Soapbox

Bluebird Theater

Games

Board Game Republic 

Bar

Hearth & Dram 

The Way Back

Brewery

Cheluna Brewing Co.

Cerebral Brewing 

Happy Hour

Postino 

The Spotted Dog

Services

New Hotel

Halcyon

Pet Services

Little Brown Dog Pet Grooming Studio 

Hike Doggie

Florist

Poppy & Pine

Honeycomb & Co.

Ski/Snowboard Tune

EVO

Powder7 Ski Shop

Mani/Pedi

B Nails Salon

Fingers & Toes

Massage

White Lotus Therapeutics 

Moyer Total Wellness

Hair Salon

Clementine’s Salon

Deseo Salon & Blowdry

Bike Shop

Tribella Women’s Multisport 

Colorado Triathlon Company

Denver Fit Loft

Campus Cycles

Interior Designer

Andrea Schumacher

Studio Thomas

Barber

Finley’s Barber Shop

Steel & Leather Barber Co.

Spa

The Spa at The Brown Palace 

Hand & Stone Massage and Facial Spa 

 

For other winners that include: best shopping, services and so much more- click here and read the article from 5280.

 

 

The Five Points Neighborhood

The Five Points neighborhood is named because it is located at the point where the diagonal grid of downtown Denver meets East Denver’s rectangular grid, creating a five way intersection where Washington Street, 26th Avenue, 27th Street and Welton Avenue meet. The neighborhood lies within the east side of Denver. Five Points is one of the oldest neighborhoods in Denver. Much of the neighborhood’s growth occurred during the 1860s and there are many interesting, historic properties still standing within the area. The light rail and the proximity of the neighborhood to downtown Denver have attracted many new people into the neighborhood.

The history of the neighborhood and its African-American heritage can be explored in the Black American West Museum and the Heritage Center, which is located within Five Points. The Five Points neighborhood is today a far more diverse community than ever. It attracts people from all over Denver. Both the Five Points Jazz Fest and Juneteenth is still held in the neighborhood every year and are a major attraction. This festival celebrates the abolition of slavery.

Welton Street In Five Points

Map Of Five Points

Parks

Lawson Park

Benedict Park

Fuller Park

 

Area Information

To Downtown………… 5 min

To 16th Street Mall… 5 min

To I-25………….………… 10 min

Grocery Store………. Safeway

 

Walk Score: 85   Bike Score: 94