Purchase Price

Definition

  • In real estate, purchase price refers to the total selling price of a property which includes the down payment and the principal on the loan.

Synonyms
purchase cost, final purchase price, full purchase price

Related Terms and Acronyms

  • Appraised Value Definition,
    • An educated opinion of how much a property is worth.
  • Asking Price Definition,
    • The amount of money the seller requests for the property or item.
  • Closing Definition,
    • In real estate, the delivery of a deed, the payment of the purchase price, the signing of notes, and the paying of closing costs, which completes a real estate transaction.
  • Down Payment Definition,
    • The portion of the purchase price a buyer pays, in cash, at the time the loan originates.
  • Fair Market Value (FMV) Acronym, Very Important,
    • The highest price that a buyer would pay for a property and the lowest price a seller is willing to accept.
  • Full Market Value Definition,
    • In reference to property taxes, usually refers to the tax rate applied to 100 percent of the property's value. Also full cash value.
  • Lending Value Definition,
    • The property value for mortgage purposes. Usually the lesser of appraised value or sale price.
  • Loan-to-Value (LTV) Acronym, Very Important,
    • The ratio of the principal amount of the loan to the lesser of the purchase price of the property or the property's appraised value. This can be expressed as an 80% loan, or 80% LTV.
    A widely used term in the mortgage brokerage and lending industry, especially by mortgage underwriters.
  • LPQ Amount Definition,
    • A term used by CanEquity which is short for Loan, Purchase or Qualification amount.
  • Mortgage (mtg) Abbreviation, Important,
    • A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • Principal Definition,
    • The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.
  • Rebate Definition,
    • A manufacturer's reduction on the price of a car as an incentive to buyers. Rebates appeal to people with no credit or less-than-perfect credit who cannot qualify for the lowest-rate loan. A rebate may also appeal to first-time buyers who don't have a lot of cash for a down payment or another car to trade in.
  • Sale Price Definition,
    • The price that is paid for an asset.
  • Valuation Definition,
    • The process of finding the worth of an asset or business.
    • The estimation of a property's price value through an appraisal.
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