Mortgage Terms To Know

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.

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Equity is the amount your property is currently worth minus the amount of any existing mortgage on your property.  “Mortgage Key Terms.” Consumer Financial Protection Bureau, … Read more

Credit History

Credit history is a record of your credit accounts and your history of paying on time as shown in your credit report. Consumer reporting companies, … Read more

Debt Ratio

Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. This number is one way lenders measure your ability to … Read more

Credit Report

A credit report is a statement that has information about your credit activity and current credit situation such as loan paying history and the status … Read more

Appraisal Fee

An appraisal fee is the cost of a home appraisal of a house you plan to buy or already own. Home appraisals provide an independent … Read more

Bi-weekly Payment

In a bi-weekly payment plan, the mortgage servicer is collecting half of your monthly payment every two weeks, resulting in 26 payments over the course of the … Read more

Automatic Payment

Automatic payments allow you to set up recurring mortgage payments through your bank. Automatic payments can be a convenient way to make sure that you … Read more

Balloon Loan

For mortgages, a balloon loan means that the loan has a larger-than-usual, one-time payment, typically at the end of the loan term. This one-time payment … Read more

Co-signer / Co-borrower

A co-signer or co-borrower is someone who agrees to take full responsibility to pay back a mortgage loan with you. This person is obligated to … Read more

Annual Percentage Rate (APR)

An annual percentage rate (APR) is a broader measure of the cost of borrowing money than the interest rate. The APR reflects the interest rate, … Read more

Conventional Loan

A conventional loan is any mortgage loan that is not insured or guaranteed by the government (such as under Federal Housing Administration, Department of Veterans … Read more

Closing Disclosure

A Closing Disclosure is a required five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your … Read more

Construction Loan

A construction loan is usually a short-term loan that provides funds to cover the cost of building or rehabilitating a home. “Mortgage Key Terms.” Consumer Financial … Read more

VA Loan

A VA loan is a loan program offered by the Department of Veterans Affairs (VA) to help servicemembers, veterans, and eligible surviving spouses buy homes.  … Read more


The Rural Housing Service, part of the U.S. Department of Agriculture (USDA) offers mortgage programs with no down payment and generally favorable interest rates to … Read more


“TRID” is an acronym that some people use to refer to the TILA RESPA Integrated Disclosure rule. “Mortgage Key Terms.” Consumer Financial Protection Bureau, Accessed 21 … Read more

Total of Payments

This number tells you the total amount of money you will have paid over the life of your mortgage. “Mortgage Key Terms.” Consumer Financial Protection Bureau, … Read more

Title Service Fees

Title service fees are part of the closing costs you pay when getting a mortgage. When you purchase a home, you receive a document most … Read more


A survey is a drawing of your property showing the location of the lot, the house, and any other structures, as well as any improvements … Read more

Short Sale

A short sale is a sale of your home for less than what you owe on your mortgage. A short sale is an alternative to … Read more