Mortgage Terms to Know
Here's a handy guide for you.
Mortgage terms can be confusing? Terms such as Fixed Rate and Adjustable Rate seem to have opposite meanings? This glossary explains mortgage terms in an easy-to-understand way.
“Customer experience is our top priority.”
Home Mortgage Explained: Underwriting
Home Mortgage Explained: UnderwritingOnce you have reached underwriting, get excited because you are nearing the end of the home loan process.
Lenders Title Insurance
Lender’s title insurance protects your lender against problems with the title to your property-such as someone with a legal claim against the home. Lender’s title … Read more
Mortgage Term
The term of your mortgage loan is how long you have to repay the loan. For most types of homes, mortgage terms are typically 15, … Read more
Jumbo Loan
Each year Fannie Mae, Freddie Mac, and their regulator, the Federal Housing Finance Agency (FHFA), set a maximum amount for loans that they will buy … Read more
Mortgage Refinance
Mortgage refinance is when you take out a new loan to pay off and replace your old loan. Common reasons to refinance are to lower … Read more
Mortgage Insurance
Mortgage insurance protects the lender if you fall behind on your payments. Mortgage insurance is typically required if your down payment is less than 20 … Read more
Mortgage Closing Costs
Mortgage closing costs are all of the costs you will pay at closing. This includes origination charges, appraisal fees, credit report costs, title insurance fees, … Read more
Monthly Expenses
This is how much you spend every month. It can include but is not limited to, recurring obligations like rent or mortgage payment, utilities, car … Read more
Loan-to-Value Ratio
The loan-to-value (LTV) ratio is a measure comparing the amount of your mortgage with the appraised value of the property. The higher your down payment, … Read more
Loan Estimate
A Loan Estimate is a three-page form that you receive after applying for a mortgage. “Mortgage Key Terms.” Consumer Financial Protection Bureau, https://www.consumerfinance.gov/consumer-tools/mortgages/answers/key-terms/. Accessed 21 May 2021. … Read more
Home Equity Line of Credit (HELOC)
A home equity line of credit (HELOC) is a line of credit that allows you to borrow against your home equity. Equity is the amount … Read more
Home Appraisal
An appraisal is a written document that shows an opinion of how much a property is worth. The appraisal gives you useful information about the … Read more
Interest Rate
An interest rate on a mortgage loan is the cost you will pay each year to borrow the money, expressed as a percentage rate. It … Read more
Initial Escrow Deposit
An initial escrow deposit is an amount that you will pay at closing to start your escrow account if required by your lender. “Mortgage Key … Read more
Home Purchase Price
A home’s purchase price is the amount agreed to by the buyer and seller to be paid to the seller to purchase the home. “Mortgage … Read more
Homeowner’s Insurance
Homeowner’s insurance pays for losses and damage to your property if something unexpected happens, like a fire or burglary. When you have a mortgage, your … Read more
Homeowners’ Association (HOA)
A homeowners’ association (HOA), is typically formed to manage shared expenses such as landscaping and other maintenance costs for a planned subdivision or other organized … Read more
Home Inspection
A home inspection is often part of the home buying process. You typically have the right to hire a home inspector to examine the property … Read more