This quick tour of the ABCs of home buying will have you fluent in all matters real estate. APR? LTV? WTF?

You're trying to learn how to navigate the confusing world of buying a home, but you keep stumbling across words that you're sure don't appear in the English language.

Assessment? Appraisal? Balloon payment? You've never heard these terms before. What do they mean?

Amortization -- Refers to the repayment schedule on a mortgage. At the beginning of a loan term, most payments are applied toward the interest due rather than the principal. Toward the end of the loan term, the situation flips: The interest has been paid in advance, so most payments apply toward principal paydown.

Appraisal -- Refers to a qualified appraiser providing a written estimate of a property's value. This is considered the most definitive expression of a property's value (short of an actual arms-length transaction) and is often required by lenders.

APR -- Stands for "annual percentage rate" and is the most accurate indicator of the cost of a mortgage loan. The APR reflects all of the closing costs, which can total as much as 3 to 5% of the loan. The best way to price-compare between various mortgages is by looking at the APR rather than the interest rate. The APR can be found on your loan disclosure documents.

ARM -- Stands for "adjustable-rate mortgage," a type of mortgage in which the interest rate fluctuates based on the prevailing rates in the overall economy. Many ARMs will lock in a fixed interest rate for a limited time, such as five years, seven years, or 10 years. Many will also guarantee that a rate increase will be "capped" at a certain maximum, such as 2%.

Assessment -- Refers to the city or county's opinion of the property's value. Important note: Assessments impact your property tax rate. Appraisals do not.

Balloon payment -- Refers to the practice of paying off the entire mortgage balance in full. Some loans (particularly those given to investors) are short-term mortgages that require a balloon payment at the end.

BPO -- Stands for "broker price opinion." Refers to a licensed real estate broker providing a written opinion as to the fair-market value of a property. This is different from an appraisal.

Capital gain -- When an owner sells their home, the increased value of their home is a capital gain. Fortunately, owner-occupants who reside in their primary residence for two years or more do not need to pay capital gain tax on the sale of their property.

Cash-out refinance -- This refers to the practice of taking out a loan over a fixed term (as long as 30 years), borrowed against the equity in a home. For example: A homeowner who possesses a lot of equity can take a "cash-out refi" for tens of thousands, which he then uses to launch a business, buy a rental property, or any other goal.

Closing costs -- A blanket term for all of the ancillary costs associated with borrowing a mortgage and buying a home. This includes title insurance, a loan origination fee, title search fees, recording fees, underwriting fees, and more.

Contingency -- When a buyer submits an offer to purchase a property, they commonly make the offer "contingent upon" some condition, such as financing or a favorable home inspection. This means the offer hinges upon that condition playing out favorably and can be withdrawn if the condition isn't met.

Depreciation -- Many people believe that their home value rises. In fact, the value of the underlying land may rise, but the actual structure depreciates each year. The roof, carpet, paint, HVAC, and other components of the home experience aging and decay. (In markets with rapid appreciation, though, the retail value of the structure might outpace depreciation.) Depreciation is reported on IRS Form 4562.

FHA -- Refers to the U.S. Federal Housing Administration. Many first-time homebuyers opt for loans that are insured by the FHA. Known as FHA loans, these require a smaller down payment (as low as 3.5%).

Fixed-rate -- Unlike an ARM, a fixed-rate mortgage (sometimes just called "fixed") retains the same interest rate over the duration of the loan, regardless of what's happening in the overall economy. A 30-year fixed loan, for example, will retain the same interest rate for the full 30-year span.

GC -- Means "general contractor," a licensed designation that indicates someone who organizes a major renovation and coordinates all the specialty subcontractors such as the electricians, drywall installers, and plumbers.

Highest and best -- Also known as "best and final," this represents the best (seriously, the best) offer you can make the seller. If the seller receives multiple offers, they might call for all the bidders to submit their "highest and best" (or "best and final") offer by a particular deadline, so that they can select among these final offers.

Inspection -- Prior to the purchase of a house, a professional inspector (certified by ASHI, the American Society of Home Inspectors, or an equivalent organization) should spend three to four hours throughly investigating the home. The inspector focuses on structural flaws, mechanicals like plumbing and HVAC, and other aspects of the home. The inspector can furnish a written report but cannot quote a price for repairs (they're not a contractor).

LTV -- "Loan-to-value." This refers to the ratio of the loan amount relative to the overall value of a property. For example: a $70,000 loan on a $100,000 property will have a 70% LTV ratio.

RE -- This is an easy term: "RE" simply stands for "real estate." Many professionals use this shorthand.

Realtor -- Fun fact: Not all real estate agents are Realtors. A real estate agent is an individual who is licensed to buy and sell real estate. A Realtor is an agent or broker who belongs to the National Association of Realtors.

When looking for the best Taos or Angel Fire Real Estate let us help you find your dream home. With amazing homes for sale in Angel Fire and Taos, you are sure to find that perfect home. Maybe land for sale in Taos and Angel Fire might be what you are looking for to build your dream home or live off the grid in our stunning Earthship homes for sale in Taos. How about a fabulous condo for sale in Angel Fire that puts you close to the slopes? Whatever you fancy, we are here to assist. Call us at 575-377-2626 in Angel Fire or 575-758-5852 in Taos our dedicated knowledgeable agents go that extra mile to find exactly what you require. To speak directly to a broker call Paula at 575-770-3306. We are here to serve and welcome you to our growing community.

Information obtained from Trulia

The "right" time to buy a house has a lot more to do with your personal situation than market factors.

Market conditions and rising rents in areas across the country caused Trulia's Rent Vs. Buy Report to lean strongly in favor of buying for a large segment of the population. Of course, your decision should be based on your personal financial situation (and your ability to stay in your new home for a while), but there are a few key reasons why you may want to sign mortgage paperwork instead of a lease.

Whether you're looking at a home for sale in Taos or Angel Fire, NM, here's the latest info on what you should consider.

1. Rates are still offsetting higher prices

Even with home prices inching up from last year, they don't wash away the huge cost savings lower mortgage rates offer. In fact, according to Trulia's report, for households putting down 20%, with plans to stay at least seven years, buying is on average 37.7% cheaper than renting. This is only a 0.5% increase from 2015. Rates would need to increase well over 100% to wipe out the cost savings of buying. Such an aggressive rate hike is highly unlikely.

2. Buying trumps renting in more than 100 metro areas

If you think buying is cheaper only in smaller, less densely populated cities and towns, reality says otherwise. In fact, it's cheaper to buy than rent in more than 100 U.S. metros.

3. There's no guarantee of stable rental rates

Nationwide, rents have increased 3.5%, which is a slower pace than real estate prices, but it's not insignificant -- and the amount can vary drastically depending on a variety of factors, making rising rental prices an unpredictable part of your financial picture. On the other hand, once rates are locked and paperwork is signed, you can expect to pay the same amount over the course of your mortgage. The only changes could be due to property taxes, insurance rates, or if you opt for an adjustable-rate mortgage over a fixed-rate mortgage.

4. You can build equity over time

This tried-and-true reason to choose homeownership doesn't depend on market conditions. One of the biggest benefits to buying a home is the ability to build equity over time -- equity that can be tapped into later. A monthly rent payment will disappear into the hands of a landlord, but a mortgage payment builds equity that can be used to purchase another home later or provide additional funds in retirement.

5. Tax breaks favor homeowners

Another financial benefit extended to homeowners comes in the form of tax deductions. The early years of paying a mortgage consist in large part of paying down interest, but this expense is tax-deductible.

Property tax is also deductible, as are as mortgage points and private mortgage insurance (PMI).

Another big tax benefit occurs upon the sale of a home. If you profit on the sale of other types of investments, you are required to pay a 15% capital gains tax.

But if you lived in your home two of the last five years before selling, the amount you earn on the sale isn't taxable.

When looking for the best Taos or Angel Fire Real Estate let us help you find your dream home. With amazing homes for sale in Angel Fire and Taos, you are sure to find that perfect home. Maybe land for sale in Taos and Angel Fire might be what you are looking for to build your dream home or live off the grid in our stunning Earthship homes for sale in Taos. How about a fabulous condo for sale in Angel Fire that puts you close to the slopes? Whatever you fancy, we are here to assist. Call us at 575-377-2626 in Angel Fire or 575-758-5852 in Taos our dedicated knowledgeable agents go that extra mile to find exactly what you require. To speak directly to a broker call Paula at 575-770-3306. We are here to serve and welcome you to our growing community.

Information obtained from Trulia

Buying a vacation home as your first home (instead of renting) may seem counter intuitive. If you live in a big city or in an area with a very competitive (and pricey) real estate market, you might not be able to afford to buy a primary residence -- but you can very likely afford a little getaway home, or someplace else where you'd like to have a retreat.

If the numbers don't work out in favor of buying, consider this: Instead of doling out dough every year to rent a home near the beach, you could own a condo in the same area.

The idea of buying a vacation home as a first real estate purchase and renting a primary home may not seem intuitive to most people, but upon closer inspection, it can definitely make financial sense. For many in large metros, it may be difficult to buy a home that's convenient to where you work and want to live because of skyrocketing home prices and high property taxes so renting makes more sense.

Yet it can be nice to own a vacation home in an affordable area you know, love, and visit regularly. - Although definitely an nontraditional route, buying a vacation home as your first home can be a smart real estate move for some people. Read on to decide if you're one of them.

Should I rent or buy?

The real estate market is thriving, and in many markets, low inventory has made the competition to buy a home even fiercer. But once you trade asphalt for grass, things start to calm down. Prices are shockingly affordable in smaller U.S. towns, and whether you're looking for a home that's a two-hour drive or a two-hour flight away, you'll likely find that you can get more for your money. This isn't to say that all rural areas are alike but by and large, prices become more reasonable the farther you travel from big-name cities. And the property taxes do too.

Do I need a 20% down payment to buy a vacation home?

Not necessarily. Another barrier to entry in a strong housing market is the down payment. Expensive homes require more money upfront, and to compete, you sometimes need to cough up more than the standard 20% down payment -- especially when all-cash deals are becoming more and more commonplace. Once you're looking at properties in the very low six figures, however, that huge initial output suddenly goes away, with loan options that might knock that figure down even further.

What about home-buying stress?

Low inventory, standing-room-only open houses, blink-and-you'll-miss-them properties that go under contract in just hours, overseas all-cash buyers who make buying a first home even more of a challenge -- it can be enough to make you throw up your hands and choose to rent forever. But all that goes away once you start looking in less-competitive areas. With fewer buyers vying for the same homes, properties stay on the market longer, bidding wars are virtually nonexistent, and it's the rare seller who isn't willing to negotiate.

Vacation planning: Done

There's nothing worse than spending another weekend in your cramped apartment while all your acquaintances post yet another round of envy-inducing vacation snapshots on social media. Buy a vacation home, though, and you suddenly have an endless number of getaways stretching out in front of you. Getting out of town is cathartic no matter where you end up, and being able to relax in a space that's all yours, without the hassles that come with hotels (tipping, parking, other guests), is almost meditative. Plus, you're already paying for it, so there's no additional cost, especially if you end up cooking at home.

Can I rent my vacation home?

If you're concerned about juggling the costs of your primary residence and the upkeep and furnishings for a vacation home you own, consider this: Some of those costs could be alleviated by renting out your second home as a vacation property to others. The potential of earning income on the days that you aren't using the property, which would realistically be most of the year, while also taking advantage of property appreciation, can turn an expensive lifestyle into a solid asset.

Be savvy about where you purchase by checking out some nearby vacation rental listings and by researching nearby activities. Does your place have four-season appeal? Is it near a celebrated museum or landmark?

Bonus: A vacation home can be your new social hub

Not everyone wants to buy a vacation home, but no one turns down the chance to visit someone else's. Investing in a second home guarantees a regular rotation of houseguests grateful for the opportunity to get away and spend quality time with friends in a relaxed environment. People you haven't seen in months will suddenly be vying for an invite, especially those with young kids who find it hard to travel. And when the big holidays roll around, you actually have the opportunity to invite your family to travel to you. (The hostess gifts aren't bad either.)

Whether you are looking to buy or sell a home in Angel Fire or Taos, look to New Mexico Mountain Properties for all of your Real Estate needs. Our warm and inviting staff will help you get exactly what you are looking for, like our majestic mountain homes for sale in Angel Fire will give you the mountain setting you may want while our unique Taos homes for sale will let you get in touch with your creative side. Our Taos Ski Valley and Angel Fire condos for sale will put you right next to all the winter activities. If you're looking to build your own home, then our Angel Fire and Taos land for sale will give you the freedom to create your own dream home. If you are seeking to live totally off the grid, then look to our Taos Earthships for sale. Whatever you're looking for we can help you find it. Give us a call at 575-377-2626 in Angel Fire, 575-758-5852 in Taos or 575-770-3306 to speak directly to an agent. We are here to serve and welcome you to our spectacular area.

Information obtained from Trulia