Amortization
This is loan paid back through regular monthly payments over time.
Appraisal
This is a report on the estimated market value of a home.
APR
This stands for Annual Percentage Rate, which is the yearly cost of borrowing money or interest charged on a loan.
Asset
The things you own that have value.
Closing Costs
This is the fees paid when buying or refinancing a home.
Collateral
This is something of value to secure a loan.
DTI
This stands for Debt-to-Income ratio, comparing how much you owe each month to how much you earn.
Equity
The portion of your home that you own.
Escrow
This is money held to pay for things like property taxes and homeowners insurance.
Fixed Rate
This is an interest rate or a fee that remains constant throughout the life of a loan.
HELOAN
This stands for Home Equity Loan, which is when you receive the entire loan amount upfront in one lump sum, paying it back in a fixed monthly payment.
HELOC
This stands for Home Equity Line of Credit, which is a line of credit that lets you borrow money using your home’s value.
Interest Rate
This is the cost of borrowing money or the amount earned on savings.
Lien
A legal claim against property for unpaid debt.
Mortgage
A loan that can help you buy a house.
PIW
This stands for Property Inspection Waiver. This allows a homebuyer to bypass the traditional, in-person home appraisal.
PMI
This stands for Private Mortgage Insurance, which may be required when buying a home with a smaller down payment.
Prequalification
An estimate of how much you may be able to borrow.
Principal Payment
This is the part of a loan payment that goes toward paying back the amount you originally borrowed.
Principal
The original amount borrowed on a loan.
Reconveyance
This is the legal document you receive once the mortgage is paid off.
Refinance
This is just taking out a new loan to replace an existing loan.
Term
The length of time to repay a loan.
Variable Rate
An interest rate that can change over time.
Your guide to the mortgage process.
It can be hard to know where to start as a first time home buyer. Check out our first time home buyer's guide to get the insight you need to start on the right path.
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From purchasing a home, to budgeting, or debt counseling, we offer several financial literacy resources.
