🏠 Home Equity Calculator
#1 Trending · calculating equity in home · how to calculate home equity · how to calculate equity · FREE 2026 Calculator + step-by-step examples.
Mortgage & Tax Finance Terms
Comprehensive guide to mortgage, tax, and financial terms for US and Canada real estate.
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Updated: July 2026🏦 2nd Mortgage (Second Mortgage)
#2 Trending · 2nd mortgage rates 2026 · requirements · vs HELOC · vs cash-out refinance · FREE payment calculator.
📊 Cash-on-Cash Return
#4 Trending · CoC return formula · rental property calculator · vs cap rate · BRRRR & Airbnb real-world investor examples.
⚖️ IRS Section 1031 Exchange
#5 Trending · 2026 Rules · 45-day / 180-day timeline · boot calculation · qualified intermediary · FREE 1031 deferral calculator.
🔨 Renovation ROI Calculator
#3 Trending · Home improvement ROI · kitchen ROI · bathroom ROI · top 10 high-return projects 2026 · FREE payback period tool.
🧾 Monthly P&I (Principal & Interest)
#6 Trending · principal and interest formula · monthly p&i calculator · p&i vs piti · FREE 2026 calculator + rate table + amortization split.
Capital Gains Tax
Tax on profit from selling property; reduced rate for long-term investments (>1 year in US).
Property Tax
Annual tax based on property assessed value, paid to local government for public services.
Credit Score
Numerical representation of creditworthiness (300-850 in US); critical for mortgage approval and rates.
FHA Loan
Government-insured loan with low down payment (3.5%); flexible credit requirements.
1031 Exchange
US IRS provision allowing deferral of capital gains tax by reinvesting in 'like-kind' property.
Principal Residence Exemption
Canadian tax exemption for capital gains on primary home; US allows $250K/$500K exclusion.
Rental Property Depreciation
Tax deduction for wear and tear on rental property; residential: 27.5 years, commercial: 39 years.
Escrow
Third-party holding of funds or documents until closing conditions are met.
Escrow Account
Third-party account holding funds for property taxes and insurance, paid monthly with mortgage.
Adjustable-Rate Mortgage (ARM)
Mortgage with interest rate that changes periodically based on market index; initial lower rate.
Fixed-Rate Mortgage
Mortgage with constant interest rate for the entire loan term; predictable monthly payments.
Home Equity
Market value of property minus outstanding mortgage balance; can be accessed via loans or refinancing.
Home Equity Line of Credit (HELOC)
Revolving loan using equity as collateral; variable rate, flexible payments.
Down Payment
Initial upfront payment when purchasing property; typically 5-20% of purchase price in US & Canada.
Closing Costs
Fees associated with finalizing a real estate transaction: title, appraisal, legal, lender fees.
Closing Disclosure
Document outlining final loan terms and closing costs; required 3 days before closing in US.
Title Insurance
One-time premium policy protecting against title defects, liens or ownership disputes.
Homeowners Insurance
Policy covering property damage, liability and personal belongings; required for mortgages.
PMI (Private Mortgage Insurance)
Mandatory insurance for US & Canada mortgages with down payment less than 20% of purchase price.
VA Loan
Zero-down-payment mortgage for US military veterans and active-duty service members.
Jumbo Loan
Mortgage exceeding conforming loan limits set by Fannie Mae/Freddie Mac; typically higher rates.
CMHC Mortgage
Canada Mortgage and Housing Corporation insured loan; allows down payments as low as 5%.
Prepayment Penalty
Fee charged by lenders for paying off mortgage early; limits refinancing flexibility.
Loan-to-Value Ratio (LTV)
Percentage of property value financed by mortgage; higher LTV means lower down payment.
Debt-to-Income Ratio (DTI)
Percentage of monthly gross income used for debt payments; key mortgage qualification factor.
Amortization Schedule
Table showing monthly payments, principal & interest breakdown over the loan term.
Monthly Principal & Interest (P&I)
Monthly P&I = fully-amortizing principal + interest portion of every fixed-rate mortgage payment; exact formula + FREE calculator + US vs Canada compounding comparison table + amortization split.
Cap Rate (Capitalization Rate)
Return metric calculated as NOI divided by property value; used to compare investment properties.
Net Operating Income (NOI)
Property income minus operating expenses; excludes mortgage payments and taxes.
Cash-on-Cash Return
Annual cash flow divided by total cash invested; measures return on actual cash outlay.
Cash-Out Refinance
Refinancing for more than current mortgage balance to access home equity as cash.
Home Appraisal
Professional valuation of property market value conducted by licensed appraiser for mortgage approval.
Property Inspection
Professional examination of property condition; identifies defects before purchase.
Comparative Market Analysis (CMA)
Analysis of recent sales of similar properties to determine market value; prepared by real estate agents.
MLS (Multiple Listing Service)
Database of listed properties used by real estate agents; provides comprehensive property information.
Realtor®
Licensed real estate professional who is a member of the National Association of Realtors (US).
Second Mortgage
Loan secured by property with lower priority than first mortgage; higher interest rate.
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