A type of mortgage where the interest rate can change periodically, typically in relation to an index.

A provision in a mortgage allowing the lender to demand immediate payment of the entire loan balance under certain conditions.

The process of gradually paying off a loan through regular payments over time, including both principal and interest.

A detailed table showing the breakdown of each mortgage payment into principal and interest over the life of the loan.

The annual cost of borrowing, including interest and other charges, expressed as a percentage.

An assessment of a property’s market value conducted by a licensed professional.

An increase in the value of a property over time.

A mortgage that can be transferred to a new borrower who meets the lender’s requirements.

A mortgage where the initial payments are lower, and a large "balloon" payment is due at the end of the loan term.

A short-term loan that provides temporary financing until permanent financing is secured.

The maximum or minimum limit on an adjustable-rate mortgage's interest rate or payment.

A refinancing option that allows a borrower to access some of their home's equity by taking out a new mortgage for more than the balance of the existing mortgage.

A lender's final approval of a borrower's loan application, allowing the closing to proceed.

The final step in a real estate transaction where the title of the property is transferred to the buyer, and funds are disbursed.

Fees and expenses, not including the down payment, paid at the closing of a real estate transaction. This may include fees for loan origination, title insurance, appraisal, and more.

A document provided to the borrower before closing that outlines all of the costs associated with the loan.

A formal offer from a lender to provide a mortgage, outlining the loan terms and conditions.

A mortgage that meets the standards and loan limits set by Fannie Mae and Freddie Mac.

A short-term loan used to finance the building or renovation of a home. It is typically converted into a permanent mortgage upon completion of the construction.

A mortgage that is not insured or guaranteed by a government agency such as FHA, VA, or USDA.

A numerical representation of a borrower's creditworthiness based on their credit history. Lenders use it to assess the risk of lending.

A ratio that compares an individual's total monthly debt payments to their gross monthly income. This helps lenders assess a borrower's ability to manage debt.

A legal document that conveys ownership of property.

A legal document that secures a loan against a property, giving the lender a security interest in the property.

A fee paid upfront to reduce the interest rate on a mortgage.

The initial amount of money a borrower pays upfront towards the purchase of a home, expressed as a percentage of the home's total purchase price.

A deposit made by the buyer to show good faith in a real estate transaction.

The difference between the current market value of a property and the outstanding mortgage balance.

An account set up by a lender to hold funds for property taxes, insurance, and other property-related expenses.

An account where funds are held in trust, usually for taxes and insurance payments.

Funds withheld during a real estate transaction to ensure that certain conditions or repairs are completed.

The portion of a mortgage payment set aside for property taxes and insurance.

A government-sponsored enterprise (GSE) that buys and guarantees mortgages.

A mortgage insured by the Federal Housing Administration, often with lower down payment requirements.

A type of mortgage where the interest rate remains the same for the entire term of the loan.

An agreement between a borrower and lender to temporarily suspend or reduce mortgage payments during financial hardship.

The legal process by which a lender takes possession of a property when the borrower fails to make mortgage payments.

A government-sponsored enterprise (GSE) that buys and guarantees mortgages.

A document stating that a sum of money is a gift and does not need to be repaid.

A revolving line of credit secured by the equity in a home.

An assessment of a property's condition by a professional inspector.

An organization that manages the rules and maintenance of a community or condominium complex.

Insurance that covers damage to a home and its contents, as well as liability for injuries on the property.

A benchmark interest rate that determines the changes in an adjustable-rate mortgage.

The cost of borrowing money, typically expressed as a percentage of the loan amount.

Real estate purchased with the intent of earning income through rental or resale.

A mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac.

A lien placed on a property due to a court ruling against the property owner.

A legal claim against a property that must be paid off when the property is sold.

A form provided to the borrower outlining the estimated costs of a loan.

The process of creating a new loan, including application, underwriting, and funding.

The management of a loan, including payment collection and customer service.

A ratio that compares the amount of the loan to the appraised value of the property. Lenders use this to assess risk.

The price a property would sell for in a fair market.

An insurance policy that protects the lender in case the borrower defaults on the loan. It's often required for loans with a high LTV ratio.

A legal document outlining the terms and conditions of a loan, including the repayment schedule and interest rate.

A situation where the loan balance increases over time because the monthly payment is not enough to cover the interest.

A mortgage that does not meet the guidelines set by government-sponsored enterprises like Fannie Mae and Freddie Mac. These loans often have higher interest rates due to their larger size or other factors.

Short for "no documentation loan," this type of loan does not require the borrower to provide proof of income or assets. These loans often come with higher interest rates to compensate for the increased risk to the lender.

A fee charged by a lender to process a loan application and originate the loan.

An acronym for the four components of a typical mortgage payment.

An initial assessment by a lender of a borrower's ability to secure a loan based on their financial situation.

A fee charged if a borrower pays off their mortgage early, often within the first few years of the loan.

The original loan amount borrowed, not including interest.

The portion of a mortgage payment that goes toward paying down the original loan amount.

A type of insurance required for conventional loans with an LTV ratio over 80%. It protects the lender in case the borrower defaults on the loan.

The steps taken to prepare a mortgage application for underwriting, including verifying information and obtaining necessary documents.

A tax assessed on real estate based on its assessed value.

A legal contract between a buyer and seller outlining the terms of a real estate transaction.

A category of loans meeting specific regulatory requirements to ensure affordability.

The maximum increase allowed in an adjustable-rate mortgage's interest rate.

An agreement between the borrower and lender to fix an interest rate for a specific period.

The process of replacing an existing mortgage with a new one, often to obtain a lower interest rate or different loan terms.

A federal law regulating mortgage transactions and ensuring transparency.

A loan for homeowners 62 or older that allows them to borrow against their home equity without making monthly payments.

A mortgage that is subordinate to the first mortgage and may have a higher interest rate.

Contributions by the seller to help the buyer with closing costs.

A measurement of land boundaries and features, often required for property transactions.

Legal ownership of a property.

An insurance policy that protects the lender (or buyer) against loss from disputes over the ownership of the property.

A detailed report on the property's ownership history and any encumbrances.

An examination of public records to confirm the legal ownership and any encumbrances on a property.

The total amount of interest paid over the life of a loan, expressed as a percentage of the original loan amount.

The act of transferring legal ownership of a property from one party to another.

An entity that holds legal title to a property on behalf of the lender or borrower in a deed of trust.

The process of evaluating a borrower's loan application to determine the risk involved for the lender.

A mortgage guaranteed by the United States Department of Agriculture, available to rural and suburban homebuyers.

A mortgage guaranteed by the Department of Veterans Affairs, available to eligible veterans and active-duty service members.

A process by which a lender confirms a borrower's financial assets.

A process by which a lender confirms a borrower's employment status and income.

A final inspection of a property by the buyer before closing to ensure that the property is in the expected condition.

A deed in which the seller guarantees that they have clear title to the property and can legally transfer ownership.

A lender that works with mortgage brokers to originate loans, rather than working directly with borrowers.