Demystify mortgage terminology with our comprehensive glossary. From APR to Zoning Laws, we make complex mortgage concepts simple to understand.
Essential mortgage terms every homebuyer should know
Your comprehensive guide to understanding mortgage terminology. We believe informed borrowers make empowered decisions.
The gradual repayment of a loan through regular payments of principal and interest over time.
A professional estimate of a property's market value, used by lenders to determine loan amount eligibility.
The total cost of borrowing annually, including interest rate plus fees—expressed as a percentage.
A mortgage with an interest rate that changes at scheduled intervals, often after an initial fixed period.
The various fees and charges (e.g., title, escrow, lender fees) paid at the closing of a real estate transaction.
A numerical rating that reflects a borrower's creditworthiness, based on payment history, debt, and other factors.
A measure of how much of your income goes toward debt payments. It helps lenders assess affordability.
The portion of the home price paid upfront, not financed through the mortgage. Often 3–20% of the purchase price.
A third-party account that holds money for property taxes and insurance, collected with your mortgage payment.
The difference between your home's market value and the amount you owe on your mortgage.
A mortgage where the interest rate remains the same for the entire term of the loan.
A government-backed loan from the Federal Housing Administration, designed for lower down payments and flexible qualifications.
These are the mortgage terms our clients ask about most frequently.
We're here to break down the jargon and walk you through each step of the mortgage process. Our expert team is just a call away.
Equitable Lending - Direct Mortgage Lending Solutions
NMLS: 1124483 | DRE: 01941713 | Los Angeles, CA
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Los Angeles, CA 90034