A little less jargon.

Amortization

Paying down a loan through scheduled payments of principal and interest over time.

APR

Annual percentage rate. A measure of borrowing cost that incorporates the interest rate and certain fees. It is different from the note rate.

Cash to close

The estimated funds needed to complete the transaction after accounting for costs, down payment, deposits, credits, and adjustments.

Closing costs

Charges associated with making the loan and completing the transaction. They are separate from the down payment.

Debt-to-income ratio

A comparison of recurring monthly debt obligations to qualifying monthly income. Lender calculations and limits vary.

Equity

The difference between a property’s value and the balances of loans secured by it.

Escrow account

An account a mortgage servicer may use to pay property taxes and certain insurance expenses from amounts collected with the payment.

HELOC

A home equity line of credit secured by your home, with borrowing and repayment terms set by an agreement.

Loan Estimate

A standard mortgage disclosure describing proposed terms, estimated payments, and closing costs.

Loan-to-value ratio

The loan amount compared with the property value used by the lender. Combined loan-to-value also considers other secured loans.

Mortgage insurance

Coverage that generally protects the lender or insurer against certain losses. It does not replace homeowners insurance or protect you from having to repay the loan.

Points

Upfront charges expressed relative to the loan amount. Discount points are generally paid to obtain a lower interest rate.

Principal

The loan amount owed, excluding interest.

Underwriting

The lender’s evaluation of the borrower, property, and transaction against its loan requirements.

No terms match. Try a different search.

Further reading: CFPB: Loan Estimate terms. Reviewed September 12, 2026. General education; program and lender requirements vary.