seller carry-back

Definition

When the seller provides financing to the buyer instead of requiring a traditional mortgage, essentially becoming the bank. It's either a creative solution or a sign someone couldn't qualify for actual financing.

Example Usage

We did a seller carry-back because no bank would touch this property, which should have been a red flag.

Origin

Alternative financing method popularized during 1980s high-interest-rate environment

Fun Fact

Seller carry-backs often come with balloon payments, meaning you'll need to refinance later when hopefully you're more financially respectable.

Source: Real estate financing terminology

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origination fee

The charge lenders levy for processing your loan application and creating your mortgage. It's basically an admission fee to the debt party, typically 0.5-1% of the loan amount.

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conforming loan

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operating expense ratio

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easement

A legal right allowing someone else to use part of your property for a specific purpose, like utility access or a driveway. It's basically permanent permission to trespass, enshrined in your deed.

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