Mortgage Vocabulary

The initial payment made towards the purchase price of a property, usually expressed as a percentage of the total price

• Closing Costs

• Principal

• Down payment

• Escrow

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

A mortgage with an interest rate that remains constant for the entire term of the loan

• Amortization

• Home equity

• Down payment

• Fixed Rate Mortgage

Insurance required for conventional mortgage loans when the borrower's down payment is less than 20% of the home's value

• Title Insurance

• Homeowner's association (hoa) fees

• Interest

• Private mortgage insurance (PMI)

The length of time over which the mortgage loan is repaid, typically ranging from 15 to 30 years

• Interest

• Principal

• Term

• Appraisal

The cost of borrowing money, typically expressed as an annual percentage rate (APR)

• Amortization

• Foreclosure

• Interest

• Principal

Tags

CCSS.7.RP.A.3

A document provided to the borrower before closing that outlines the final terms and costs of the mortgage loan

• Closing disclosure

• Mortgage

• Closing Cost

• Appraisal

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

An estimate of the value of a property conducted by a licensed appraiser to determine the fair market value

• Title Insurance

• Appraisal

• Escrow

• Amortization

The process of obtaining a new mortgage loan to replace an existing mortgage, often to secure a lower interest rate or better terms

• Amortization

• Foreclosure

• Refinancing

• Mortgage

A fee charged by some lenders if the borrower pays off the mortgage loan before the end of the term

• Interest

• Mortgage

• Closing Cost

• Prepayment penalty

A third-party account used to hold funds, such as property taxes and homeowners insurance, collected as part of the monthly mortgage payment

• Mortgage

• Amortization

• Escrow

• Appraisal