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-- ee -- nderstan If you're thinking of buying a home for the very first time, the process may seem a little confusing -- even intimidating. You'll find yourself immersed in what may seem like a whole new language -- as you hear terms like "en- croachments," "blended mortgage payments," "buy-downs" and "coun- teroffers." To help you understand the language of real estate better, the Ontario Real PORT PERRY STAR ------ ee ------ Estate Association has compiled a glossary of some of the most common real estate terms which you're likely to encounter. The association also publishes a 128-page book, "How to Buy Your First Home," which fully explains the process of buying a home. The book is available free-of-charge by calling 1-800-563- HOME. Amortization: The number of years it takes to Member Oshawa & Dutrict Real Estate Board Member Lindsay & Dutrict Rea! Estate Board Lid & PORT PERRY PLAZA 416) 985-9777 FAX 985-9161 ding real repay the entire amount of a mortgage. Appraisal: An esti- mate of a property's mar- ket value, used by lenders in determining the amount of the mortgage. Assessment: The value of a property, set by the lo- cal municipality, for the purposes of calculating property tax. Assumable Mort- gage: A mortgage held on a property by the seller that can be taken over by Tuesday, October 6, 1992 estate terms the buyer, who then ac- cepts responsibility for making the mortgage pay- ments. Blended Mortgage: A combination of two mort- gages, one with a higher interest rate than the oth- er, to create a new mort- gage with an interest rate somewhere between the two original rates. Blended Mortgage Payments: Equal or reg- ular mortgage payments, consisting of both a princi- pal and an interest compo- nent. With each succes- sive payment, the amount applied to interest de- creases and the amount applied to the principal in- creases, although the to- tal payment doesn't change. (Exception - see variable rate mortgages). Buy-down: When the seller reduces the interest rate on a mortgage by pay- ing the difference between the reduced rate and mar- (Turn to page 3) PORT PERRY CENTURY HOME Original tnm, 3 bedrooms, master ensuite, centre hall plan, formal dining room with french doors, separate living room, main floor fam- ily room with fieldstone fireplace and walkout to patio. Upgraded windows, plumbing and electrical. Electric forced air furnace Mature lot. Close to all amenities. Priced to this market. Asking $209,700. Come and see it to appreciate ith! RR fa THREE BEDROOM SIDESPLIT OVERLOOKING LAKE SCUGOG Tastefully decorated, natural trim throughout, main floor family with walkout and fireplace, main floor laundry, new shingles and carpeting. Call for inspection. Now reduced to $139,900.