The home appraisal glossary of terms used on PreAppraise.com
- comparative market analysis
(abbrv. – CMA) an analysis of recent sales of similar properties within a close geographic area compared to the subject property
- Fannie Mae
Federal National Mortgage Association – FNMA
a government sponsored enterprise (GSE) chartered by congress to promote the availability of mortgages to all Americans by purchasing mortgages and offering them to a secondary market.
- FHA Loan
A mortgage intended for low to middle income borrowers who do not have funds for a large downpayment. These loans provided by federally qualified lenders that are insured by the Federal Housing Administration (FHA).
the purchase of real estate at a price below market value with the intention to resell quickly for a profit. Flipping is often associated with distressed properties (foreclosures, short sales, estates, etc) that are purchased by an investor, renovated and placed on the market for a profit.
- Freddie Mac
Freddie Mac – Federal Home Loan Mortgage Corp – FHLMC
a government sponsored enterprise (GSE), similar to Fannie Mae, chartered by Congress to promote the flow of money to mortgage lenders in support of homeownership in middle income americans.
- Home Appraisal
an objective opinion of value for a home
Private Mortgage Insurance
Insurance policies obtained by homeowners / borrowers to protect lenders against loss if a borrower defaults. Generally, lenders require PMI for loans where a homeowner’s equity is less than 20%
- pre listing appraisal
a home appraisal performed prior to listing a home for sale. used to determine the fair market value and sometimes the listing price.
to appraise your home prior to listing, refinancing or reverse mortgage
to modify an existing loan to more favorable terms such as lower interest, later loan maturity and or lower monthly payments.
- Reverse Mortgage
a financial too for senior home owners over 62 years of age which allows them to draw equity from their home with qualifying credit or income.
Uniform Standards of Professional Appraisal Practice – the generally accepted standard of appraisal in the United States. Provides a minimum set of quality control standards used in the development of real estate appraisals