- A
- Amortization
- The process of paying off a loan through regular payments, where each payment covers the interest due first and reduces the principal with the remainder. Early payments are mostly interest; later ones mostly principal. Open the Amortization Calculator
- Appraisal
- A licensed appraiser's independent estimate of a home's market value, ordered by the lender to confirm the property is worth the loan amount. Open the Home Closing Cost Calculator
- APR (Annual Percentage Rate)
- The yearly cost of a loan expressed as a percentage, including the interest rate plus certain fees and points. APR is usually higher than the note rate and is the best single figure for comparing offers. Open the APR Mortgage Calculator
- ARM (Adjustable-Rate Mortgage)
- A mortgage whose interest rate is fixed for an initial period and then adjusts periodically based on an index plus a margin, within set caps. Open the Adjustable-Rate Mortgage (ARM) Calculator
- ARM index
- The published benchmark (today usually SOFR) an adjustable-rate mortgage is tied to; when the index moves, your rate moves with it after the fixed period. Open the Adjustable-Rate Mortgage (ARM) Calculator
- Assumable mortgage
- A mortgage a buyer can take over from the seller at its existing rate and terms — valuable when that rate is well below current rates. Mainly FHA, VA and USDA loans. Open the Mortgage Calculator
- B
- Balloon payment
- A large lump-sum payment due at the end of a loan that was structured with low payments over a short term, leaving most of the principal unpaid. Open the Balloon Mortgage Calculator
- Bridge loan
- A short-term loan that taps the equity in your current home to fund the down payment on a new one before the old home sells. Open the Home Equity Loan Calculator
- C
- Closing costs
- The fees and charges due when a mortgage closes — origination, title, escrow, appraisal, prepaids and more — typically 2–5% of the purchase price for buyers. Open the Home Closing Cost Calculator
- Closing disclosure
- The final five-page statement of your loan terms and closing costs, which the lender must give you at least three business days before closing. Open the Home Closing Cost Calculator
- CLTV (Combined Loan-to-Value)
- The total of all loans secured by a property divided by its value. Lenders cap CLTV (often at 80–85%) when you add a home-equity loan or HELOC. Open the Home Equity Loan Calculator
- Conforming loan
- A conventional mortgage that meets the size limit and guidelines set by Fannie Mae and Freddie Mac, so they can buy it — which usually earns a lower rate. Open the Mortgage Calculator
- Contingency
- A condition written into a purchase contract — such as financing, appraisal or inspection — that lets the buyer exit and keep their earnest money if it is not met. Open the Home Closing Cost Calculator
- Conventional loan
- A mortgage not insured by a government agency (FHA/VA/USDA), following Fannie Mae and Freddie Mac guidelines — usually needing stronger credit and 3–20% down. Open the Mortgage Calculator
- D
- Debt-to-income ratio (DTI)
- Your total monthly debt payments divided by your gross monthly income. Lenders use it to judge how much mortgage you can handle, typically capping it around 43%. Open the Home Affordability Calculator
- Discount points
- Optional upfront fees paid to lower your interest rate. One point costs 1% of the loan and usually reduces the rate by about 0.25%. Open the Mortgage Points Calculator
- Down payment
- The cash you pay up front toward a home purchase. A larger down payment lowers your loan, your payment, and — at 20% or more — removes the need for PMI. Open the Down Payment Calculator
- E
- Earnest money
- A good-faith deposit — often 1–3% of the price — a buyer puts down with an offer, held in escrow and credited toward the purchase at closing. Open the Home Closing Cost Calculator
- Equity
- The portion of your home you truly own — its market value minus the balance of all loans secured by it. Equity grows as you pay down principal and as the home appreciates. Open the Home Equity Loan Calculator
- Escrow
- An account your lender uses to collect and pay property taxes and insurance on your behalf, spreading those bills across your monthly payment. Open the Mortgage Calculator with Taxes & Insurance
- F
- FHA loan
- A mortgage insured by the Federal Housing Administration, allowing lower down payments and credit scores in exchange for upfront and annual mortgage insurance premiums (MIP). Open the FHA Loan Calculator
- Fixed-rate mortgage
- A mortgage whose interest rate — and therefore principal-and-interest payment — never changes over the life of the loan. Open the Mortgage Calculator
- Forbearance
- A temporary pause or reduction in mortgage payments a lender grants a borrower facing hardship; the paused amount is repaid later, not forgiven.
- Foreclosure
- The legal process by which a lender takes ownership of a home after the borrower falls seriously behind on payments, then sells it to recover the debt.
- Funding fee (VA)
- A one-time fee on a VA loan — 2.15% on a first-use purchase with no down payment — that replaces monthly mortgage insurance and is waived for disabled veterans. Open the VA Loan Calculator
- G
- GSE (Fannie Mae & Freddie Mac)
- Government-sponsored enterprises — Fannie Mae and Freddie Mac — that buy conforming mortgages from lenders, keeping money flowing and rates lower. Open the Mortgage Calculator
- H
- HELOC
- A home equity line of credit: a revolving, usually variable-rate credit line secured by your home, which you draw from and repay during a draw period before a repayment period begins. Open the HELOC Calculator
- HOA (Homeowners Association)
- An organization in some communities that maintains shared areas and enforces rules, funded by mandatory dues that add to your monthly housing cost. Open the Home Affordability Calculator
- Home equity loan
- A fixed-rate second mortgage that gives you a lump sum against your equity, repaid in equal installments over a set term. Open the Home Equity Loan Calculator
- Home inspection
- A buyer-ordered examination of a home's condition — roof, systems, structure — used to spot problems before closing, separate from the lender's appraisal. Open the Home Closing Cost Calculator
- Homeowners insurance
- A policy covering damage to your home and belongings, required by lenders and usually collected monthly into escrow as part of your payment. Open the Mortgage Calculator with Taxes & Insurance
- I
- Interest rate
- The percentage a lender charges to borrow the principal, before fees. It drives your monthly payment; the APR captures the rate plus certain costs. Open the Mortgage Calculator
- J
- Jumbo loan
- A mortgage that exceeds the conforming loan limits set for Fannie Mae and Freddie Mac, often with stricter qualifying requirements. Open the Jumbo Mortgage Calculator
- L
- Loan estimate
- A standardized three-page disclosure a lender must send within three business days of your application, laying out the rate, monthly payment, closing costs and terms. Open the Home Closing Cost Calculator
- Loan-to-value (LTV)
- The loan amount divided by the home value, as a percentage. An LTV above 80% generally triggers private mortgage insurance. Open the Down Payment Calculator
- M
- Margin
- The fixed percentage a lender adds to the index to set an adjustable-rate mortgage's rate after the fixed period. Index + margin = your rate. Open the Adjustable-Rate Mortgage (ARM) Calculator
- MIP (Mortgage Insurance Premium)
- The FHA's mortgage insurance — an upfront premium of 1.75% plus an annual premium — that, unlike conventional PMI, usually lasts the life of the loan. Open the FHA Loan Calculator
- O
- Origination fee
- A lender's charge for processing a new loan, usually a percentage of the amount borrowed, paid at closing. Open the Home Closing Cost Calculator
- P
- Piggyback loan (80-10-10)
- A structure that splits financing into a first mortgage plus a smaller second loan — commonly 80-10-10 — to avoid PMI without a full 20% down payment. Open the Combination (Piggyback) Mortgage Calculator
- PITI
- The four parts of a typical mortgage payment: Principal, Interest, Taxes and Insurance. Lenders qualify you on the full PITI figure. Open the Mortgage Calculator with Taxes & Insurance
- PMI (Private Mortgage Insurance)
- Insurance that protects the lender when your down payment is under 20% (LTV above 80%). It is added to your payment and typically drops off at 20–22% equity. Open the Mortgage Calculator with PMI
- Pre-approval
- A lender's conditional commitment to lend up to a certain amount based on a review of your finances, stronger than a pre-qualification. Open the Mortgage Qualifier Calculator
- Prepayment penalty
- A fee some loans charge for paying off the balance early. Most modern conforming mortgages do not have one — always confirm before making large extra payments. Open the Mortgage Payoff Calculator
- Principal
- The amount you borrow, separate from interest. Each payment reduces principal a little more as the loan amortizes. Open the Amortization Calculator
- Property tax
- An annual tax a local government charges on your home's assessed value, usually collected monthly into escrow as part of your mortgage payment. Open the Mortgage Calculator with Taxes & Insurance
- R
- Rate buydown
- Paying upfront to lower your mortgage rate — permanently with discount points, or temporarily (like a 2-1 buydown) for the first year or two. Open the Mortgage Points Calculator
- Rate cap
- A limit on how much an ARM's rate can rise — an initial cap at the first reset, a periodic cap per adjustment, and a lifetime cap over the loan. Open the Adjustable-Rate Mortgage (ARM) Calculator
- Rate lock
- A lender's guarantee to hold a quoted interest rate for a set period — often 30 to 60 days — while your loan closes, protecting you from rate increases. Open the Mortgage Calculator
- Refinance
- Replacing your existing mortgage with a new one — usually to lower the rate, change the term, or tap equity. Worth it when savings outweigh closing costs before you move. Open the Mortgage Refinance Calculator
- Reverse mortgage
- A loan for homeowners 62 and older that converts equity into cash without monthly payments; the balance grows and is repaid when the home is sold or the owner moves. Open the Reverse Mortgage Calculator
- S
- Short sale
- A sale in which the lender agrees to accept less than the mortgage balance because the home is worth less than is owed, letting a struggling owner avoid foreclosure.
- T
- Title insurance
- A one-time policy paid at closing that protects against defects in a property's title — liens, forged deeds, unknown heirs — that could surface after you buy. Open the Home Closing Cost Calculator
- U
- Underwriting
- The lender's process of verifying your income, assets, credit and the property to decide whether to approve your loan and on what terms. Open the Mortgage Qualifier Calculator
- USDA loan
- A zero-down mortgage backed by the U.S. Department of Agriculture for eligible rural and suburban buyers who meet income limits. Open the USDA Loan Calculator
- V
- VA loan
- A mortgage guaranteed by the Department of Veterans Affairs for eligible service members and veterans, often with no down payment and no PMI. Open the VA Loan Calculator