Mortgage Glossary
Plain-English definitions of the mortgage terms you need to know — backed by official sources from the CFPB, HUD, and VA.
What Is PMI?
Private Mortgage Insurance — what it costs, when it's required, and when it cancels.
What Is Amortization?
How mortgage payments are structured so early payments go mostly to interest, later to principal.
What Is Escrow?
How escrow accounts collect and pay property taxes and insurance on your behalf.
What Is Mortgage Insurance?
An overview of all types — PMI, FHA MIP, USDA guarantee fee, and VA funding fee.
What Is Debt-to-Income Ratio (DTI)?
How lenders measure your monthly debt load against income, and the limits by loan type.
What Is Loan-to-Value Ratio (LTV)?
How LTV determines your PMI requirement, interest rate, and loan eligibility.
What Is an FHA Loan?
The key features, limits, and costs of FHA-insured mortgages backed by HUD.
What Is a VA Loan?
Benefits, eligibility, and funding fee details for VA-guaranteed home loans.
What Is a HELOC?
Home Equity Lines of Credit — how draw and repayment periods work, and the risks.
What Is a Mortgage Point?
How discount points buy down your rate, and how to calculate break-even.