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San Diego downtown real estate broker

Bob Schwartz, CRS, GRI 

Certified Residential Specialist



San Diego, California 92101

Telephone - Cell:
(619) 300-8819

(619) 229-0048

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Top Ten Loan Terms in San Diego

By Bob Schwartz, CRS, GRI 2005 All rights reserved.

Everyone in San Diego knows that you should never sign on the dotted line without first reading the contract. The same goes for loans. Signing a loan without knowing the terms and what everything means can be harmful to your finances, credit, and future investments. Before you sign anything, make sure that you can recognize the following terms and how they will affect you.

1. Interest rate. The percentage of your loan that is added to the total that you owe each month is called your interest rate. The percentage will vary based on the economy and will affect your payments.

2. Fixed Rate. This is an interest rate that remains at the same percentage throughout the entire time-span of your loan.

3. Variable Rate. A variable rate will vary according to the economy and the charts that are stating what the rate amount should be. This type of rate normally shifts every year and adjusts according to a particular given range of percentages.

4. Principal. The principal is what you will view as your investment as it is what you pay on your actual home.

5. Escrow. This is similar to a savings account for your loan. However much you put in escrow will accumulate without paying directly into the loan. At the close of the term you can use it to finish paying off the loan or to invest in another loan.

6. Title. A title will be your claim to your home after it is legitimately yours. It states that the property is yours.

7. Deed. A deed is most frequently used as a title for a commercial area. Instead of acknowledging ownership it shows that the property is leased to the one who is using it as a business.

8. Home Equity. This is a loan or line of credit that you can get for your home. It will finance up to 8% of your other loan and be paid back later. This helps you if you want to consolidate loans or invest more into the property.

9. Appraisal. After an inspection of the home is made, an appraisal will be made. This will be an approximated value of what the home is worth.

10. Equity. This is the actual amount of the property that you own. Most likely, this is what is being paid off of your principal amount.

After you've mastered these fundamental terms, you will be able to expand on your knowledge and find the exact loan to meet your needs. These basic definitions will help you in making the right decision for the type of loan that you want.



Bob Schwartz, is a Certified Residential Specialist, CA licensed real estate broker with Bob has over 27 years of residential real estate experience, authored a number of published articles and served as an expert witness for San Diego lawyers. You can contact Bob via e-mail at or visit his highly popular San Diego real estate website at:
This work is protected under copyright and may not be published in other works without express written permission from Promotions Unlimited or the following procedures are implemented: Please feel free to publish this article (as long as no changes are made (all hyper-links to remain and not be modified in any way) and the author's name and site URL's are retained) in your ezine, newsletter, offline publication or website. A copy would be appreciated at Click here to email Bob


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