A type of mortgage with an interest rate that periodically adjusts based on an index.

The process of gradually paying off a loan through scheduled payments of principal and interest.

The total cost of borrowing a loan, expressed as an annual percentage, including interest and fees.

A professional assessment of a property's value, typically required by lenders before approving a mortgage.

Any valuable item owned by an individual, such as cash, real estate, or investments, that may be considered in a loan application.

A loan with small payments for a set period, followed by one large lump sum payment at the end of the term.

The person or entity that takes out a loan and agrees to repay it.

A professional who connects borrowers with lenders and helps facilitate mortgage transactions.

A short-term loan used to finance a new home purchase while waiting to sell an existing home.

The final step in a real estate transaction where the property officially transfers from the seller to the buyer.

Fees associated with finalizing a mortgage, including loan origination fees, title insurance, and escrow charges.

An asset, such as a home, pledged as security for a loan.

A mortgage not insured or guaranteed by a government agency.

A numerical representation of a borrower's creditworthiness, influencing loan approval and interest rates.

A percentage comparing a borrower's total monthly debt payments to their gross monthly income.

A legal document transferring property ownership from one party to another.

Failure to make scheduled loan payments, potentially leading to foreclosure.

The initial upfront payment made when purchasing a home, usually a percentage of the purchase price.

A deposit made by the buyer to show serious intent to purchase a home.

The difference between a property's market value and the outstanding mortgage balance.

A financial arrangement where a neutral third party holds funds or documents until certain conditions are met.

The estimated price a property would sell for under normal market conditions.

A government-sponsored enterprise that buys and securitizes mortgages.

A government-backed mortgage insured by the Federal Housing Administration, often allowing lower down payments.

A loan with an interest rate that remains constant throughout the term of the mortgage.

A legal process where a lender takes ownership of a property due to the borrower's failure to make payments.

A government-sponsored enterprise that purchases mortgages from lenders, providing liquidity and stability to the mortgage market.

A document outlining estimated loan costs provided to borrowers during the mortgage process (replaced by the Loan Estimate in 2015).

A set time after a payment due date during which the borrower can make a payment without penalty.

A loan secured by the borrower's home equity, typically used for home improvements or large expenses.

A U.S. government agency that oversees housing policies and programs.

The percentage charged by a lender for borrowing money.

A loan where the borrower pays only interest for a specified period before principal payments begin.

The process of confirming a borrower’s income through documents such as tax returns and pay stubs.

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

A form providing borrowers with key details about the estimated costs of a mortgage loan.

A percentage measuring the mortgage amount compared to the appraised property value.

A legal claim against a property as security for a debt.

A loan used to purchase real estate, secured by the property itself.

Protection for the lender if the borrower defaults on the loan, often required for loans with less than 20% down payment.

A legal document outlining the loan amount, interest rate, and repayment terms.

A lender's conditional approval of a borrower for a specific loan amount based on financial information.

The original loan amount borrowed, excluding interest.

Insurance required on conventional loans when the down payment is less than 20%.

Fees paid upfront to reduce the mortgage interest rate.

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

The process of replacing an existing mortgage with a new one, often to secure a lower interest rate.

A loan secured against a home’s equity in addition to the primary mortgage.

A mortgage for borrowers with low credit scores, typically carrying higher interest rates.

Legal ownership of a property.

A policy protecting against legal claims on a property's ownership.

 A law requiring lenders to disclose loan costs and terms to borrowers.

The lender’s process of evaluating a borrower’s financial risk before approving a mortgage.

A government-backed loan for rural and suburban homebuyers, offering low or no down payment options.

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

A rate that fluctuates based on market conditions.