Adjustable-Rate Mortgage (ARM)
A program with interest rates and payments that change over the life of the loan.
Annual Percentage Rate (APR)
The annual rate charged (including fees) for borrowing expressed as a percentage.
How the government determines the amount of property taxes to be paid.
The costs of getting a mortgage paid at closing including origination fees, points, insurance, etc.
The deposit paid to the seller demonstrating the buyer’s commitment to purchasing the home.
The difference between a home’s value and how much is still owed. (Value – Balance = Equity).
A portion of each mortgage payment held in an account to pay the property’s taxes and insurance.
Legal claim by a lender or creditor holding the property as security for a debt.
Acronym for principal, interest, taxes, and insurance. Everything your mortgage payment covers.
A preliminary agreement from a lender granting a mortgage loan which speeds up the buying process.