1. Chapter 12 Real Estate and Mortgages
Dave Ramsey

2. Key Terms Appraisal: An opinion of value on a home.
Appreciation: To increase in value.
ARM (Adjustable Rate Mortgage): Home loan secured by a deed of trust or mortgage in which the interest rate will change periodically (i.e. annually); brought on as a result of high interest rates in the early 1980s as a way for banks to transfer the risk of higher interest rates to the consumer.

3. Key Terms
Conventional Loan: Mortgage obtained through the Federal National Mortgage Association (FNMA), which insures against default; generally includes a down payment of 5-20% or more.
Curb Appeal: The appearance of a home from the street.
Equity: The property value over and above any mortgage or liabilities related to it.

4. Key terms Fixed Rate: An interest rate that does not change over time.
Interest Only Loan: A mortgage where you only pay the interest.
MLS (Multiple Listing Service): Computer program used by realtors to search frequently updated listings of available properties in order to find prospective homes for their clients.

5. Key terms
Mortgage: A loan secured by the collateral of some specified real estate property, obligates the borrower to make a predetermined series of payments.