Do you know what these downtown real estate acronyms mean?
Downtown Boston real estate acronyms are tossed around like crazy in the Boston Midtown real estate world, which can be confusing to even the most veteran downtown home buyers. But don’t worry — it doesn’t take long to learn the language. Below is a quick list of the most widely used Boston condos for sale acronyms and what they actually mean. Of course, if you’d like to know even more real estate terminology, don’t hesitate to call us.
MLS: Multiple Listing Service
MLS -The multiple listing service is a massive database of available properties that is split up into hundreds of different regions. If you’ve ever heard someone refer to a home as “on the market,” it means that the Boston condo for sale is available on the MLS.
Boston condo for sale buyers can search for properties that are on the MLS by using a real estate agent’s website (like ours!), but that’s not the only way to find Boston downtown condos. Your agent can send you updates whenever new properties hit the market. Want to get these email updates? Call us and we’ll set them up for you!
PITI: Principal, Interest, Taxes, and Insurance
PTI – Principal, interest, taxes, and insurance are the four parts of a mortgage payment. Initially, you will pay more toward the interest on the mortgage, but you will start to pay off more of the principal (the initial loan amount) the longer you stay in your home.
FHA: Federal Housing Administration
FHA – The Federal Housing Administration, or FHA, is a mortgage insurer that offers a variety of home buying assistance programs to help people purchase homes that they otherwise couldn’t afford.
FHA-insured loans generally offer more flexible credit qualifications and a lower down payment. However, borrowers are required to pay for mortgage insurance. Interest rates and terms depend on the FHA-approved mortgage lender you choose.
PMI: Private Mortgage Insurance
Speaking of mortgage insurance, many lenders require you to have private mortgage insurance (PMI) if you can’t put 20% down on your home. This insurance protects the lender in case you can’t pay off your mortgage.
HOA: Homeowners Association
Want to live in a Boston Midtown condo with a concierge? Chances are you’re looking for a neighborhood with an HOA, or homeowners association (condo fees)
An HOA is responsible for maintaining common areas and any amenities, and it typically sets standards for how homes should look in order to keep property values up. In some cases, homeowners associations may even include Internet, cable, and lawn care with their HOA dues.