Brought to you by 7th Level Mortgage LLCApply Now Mortgage terms made clearer
Mortgage language can make a straightforward goal feel complicated. Use this glossary as a starting point, then ask how a term applies to your actual transaction.
The interest rate helps determine borrowing cost, while APR is a broader annualized measure that includes certain finance charges. Neither alone describes taxes, insurance or every cash requirement.
DTI compares qualifying monthly debts with qualifying gross monthly income. The calculation and acceptable level vary by program and underwriting findings.
LTV compares a loan amount with the property's applicable value. It can affect pricing, mortgage insurance and available program choices.
An escrow account commonly collects part of anticipated property taxes and insurance with the mortgage payment. Required amounts can change as those expenses change.
General information is useful. A mortgage professional can help you evaluate the facts that apply to you.
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