Financial Vocabulary

#361

Mortgage rate

Example sentences

1. The bank offered a mortgage rate of 6%.
2. A lower mortgage rate can reduce monthly payments.
3. Mortgage rate changes affected home sales.

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#362

Mortgage term

Example sentences

1. Their mortgage term is 30 years.
2. A shorter mortgage term usually means higher monthly payments.
3. He compared a 15-year and a 30-year mortgage term.

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#363

Escrow account

Example sentences

1. The lender uses an escrow account for tax and insurance payments.
2. Part of each mortgage payment goes into the escrow account.
3. The bank reviewed the escrow account balance.

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#364

Property tax

Example sentences

1. The homeowner pays property tax every year.
2. Property tax helps fund local services.
3. The city increased the property tax rate.

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#365

Closing costs

Example sentences

1. The buyer paid $5,000 in closing costs.
2. Closing costs include several fees and services.
3. She saved extra money for the closing costs.

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#366

Appraisal

Example sentences

1. The bank ordered an appraisal of the house.
2. The appraisal estimated the property value at $300,000.
3. A low appraisal can affect the mortgage amount.

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#367

Foreclosure

Example sentences

1. The bank began foreclosure after many missed payments.
2. Foreclosure can cause the borrower to lose the home.
3. The family contacted the lender to avoid foreclosure.

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#368

Private mortgage insurance

Example sentences

1. The buyer pays private mortgage insurance because the down payment was small.
2. Private mortgage insurance protects the lender.
3. The homeowner may cancel private mortgage insurance after building enough equity.

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#369

Real estate investment trust

Example sentences

1. She bought shares in a real estate investment trust.
2. A real estate investment trust owns income-producing properties.
3. The real estate investment trust paid a quarterly dividend.

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#370

Rental income

Example sentences

1. The apartment provides $1,200 in rental income each month.
2. Rental income must cover repairs and other costs.
3. The owner reported the rental income on a tax return.

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#371

Capitalization rate

Example sentences

1. The building has a capitalization rate of 7%.
2. The capitalization rate compares property income with value.
3. The investor used the capitalization rate to compare two buildings.

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#372

Occupancy rate

Example sentences

1. The hotel has an occupancy rate of 90%.
2. A higher occupancy rate can increase rental income.
3. The manager checks the occupancy rate every week.

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#373

Vacancy rate

Example sentences

1. The apartment building has a vacancy rate of 5%.
2. A high vacancy rate can reduce income.
3. The owner lowered rent to improve the vacancy rate.

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#374

Real estate bubble

Example sentences

1. Rapid price increases created fears of a real estate bubble.
2. A real estate bubble may end with a sharp price fall.
3. Banks became more careful during the real estate bubble.

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#375

Commercial real estate

Example sentences

1. The company invested in commercial real estate.
2. Offices and shopping centers are commercial real estate.
3. Demand for commercial real estate changed after remote work increased.

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#376

Insurance

Example sentences

1. They bought insurance for their new car.
2. Insurance can help pay for unexpected losses.
3. The family reviews its insurance every year.

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#377

Policyholder

Example sentences

1. The policyholder called the company after the accident.
2. A policyholder pays for the insurance policy.
3. The insurer sent a renewal notice to the policyholder.

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#378

Insurer

Example sentences

1. The insurer approved the claim.
2. An insurer collects premiums and pays covered losses.
3. She compared prices from more than one insurer.

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#379

Insurance policy

Example sentences

1. The insurance policy covers fire damage.
2. He read the insurance policy before signing it.
3. The insurance policy lasts for one year.

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#380

Coverage

Example sentences

1. The health plan provides coverage for hospital care.
2. She added theft coverage to her car insurance.
3. The policy has limited coverage outside the country.

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