Mortgage Glossary

Loans can use fixed or adjustable rates, and eligibility varies by program. Ask your lender which loan structure fits your situation.

The amount borrowed or the remaining unpaid loan balance.

The percentage used to calculate the cost of borrowing.

Annual percentage rate reflects interest and certain loan costs. It can help compare loan offers.

The portion of the purchase price paid upfront by the buyer.

The period over which a loan is scheduled to be repaid.

The schedule that allocates payments between principal and interest over time.

Private mortgage insurance may apply to some conventional loans, depending on the down payment and loan terms.

Local taxes assessed on property; confirm the amount and any reassessment implications.

Coverage for specified property risks. Lenders generally require coverage; policy terms vary.

An account or arrangement that holds funds for a defined purpose. A mortgage escrow account may collect money for taxes and insurance.

A comparison of monthly debt obligations with monthly income that lenders use in evaluating borrowing capacity.