Mortgage
Glossary
Demystify mortgage terminology with our comprehensive glossary. From APR to Zoning Laws, we make complex mortgage concepts simple to understand.
Quick Start Guide
Essential mortgage terms every homebuyer should know
Mortgage Terms
Glossary
Your comprehensive guide to understanding mortgage terminology. We believe informed borrowers make empowered decisions.
Amortization
The gradual repayment of a loan through regular payments of principal and interest over time.
Appraisal
A professional estimate of a property's market value, used by lenders to determine loan amount eligibility.
APR (Annual Percentage Rate)
The total cost of borrowing annually, including interest rate plus fees—expressed as a percentage.
ARM (Adjustable-Rate Mortgage)
A mortgage with an interest rate that changes at scheduled intervals, often after an initial fixed period.
Closing Costs
The various fees and charges (e.g., title, escrow, lender fees) paid at the closing of a real estate transaction.
Credit Score
A numerical rating that reflects a borrower's creditworthiness, based on payment history, debt, and other factors.
Debt-to-Income Ratio (DTI)
A measure of how much of your income goes toward debt payments. It helps lenders assess affordability.
Down Payment
The portion of the home price paid upfront, not financed through the mortgage. Often 3–20% of the purchase price.
Escrow
A third-party account that holds money for property taxes and insurance, collected with your mortgage payment.
Equity
The difference between your home's market value and the amount you owe on your mortgage.
Fixed-Rate Mortgage
A mortgage where the interest rate remains the same for the entire term of the loan.
FHA Loan
A government-backed loan from the Federal Housing Administration, designed for lower down payments and flexible qualifications.
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