Mortgage terminology to know There's a lot of vocab to learn when you're looking for a home loan. To make things even trickier, in many cases these are specialized uses of everyday words. Here are some terms you might come across. APR. APR is short for annual percentage rate. This nu...
A mortgage is a loan procured by a buyer to pay off the seller of a piece of property in full. The buyer then owes the lender the total amount borrowed, plus interest and fees. As collateral or guarantee of payment, the lender holds the deed or ownership of said property, until the ...
A mortgage is a loan procured by a buyer to pay off the seller of a piece of property in full. The buyer then owes the lender the total amount borrowed, plus interest and fees. As collateral or guarantee of payment, the lender holds the deed or ownership of said property, until the ...
Mortgage broker fees. Mortgage brokers work on behalf of homebuyers to find suitable lenders offering favorable loan terms. Their service fee is included in the APR because it is a cost of securing suitable financing. Mortgage points. Mortgage points are discounts on the interest rate. Homebuyers ...
A mortgage is a type of loan consumers use to purchase a house and agree to repay in equal, fixed monthly amounts over a certain time span, or term. For many homebuyers, the mortgage process is an essential part of the homeownership experience, though it can be a lot to wrap your head...
A mortgage is a loan used to purchase or maintain a home, plot of land, or other real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments divided into principal and interest. The property then serves as collateral to secure the loan. A bo...
Where interest is the cost of borrowing the money each year, the APR is a broader overview of the cost of borrowing, which takes not only the interest rate into account but also any points, mortgage broker fees, and other charges you must pay in order to get the loan. Not surprisingly...
When you’re refinancing or taking out a mortgage, keep in mind that an advertised interest rate isn’t the same as your loan’s annual percentage rate (APR). What’s the difference? Interest rate refers to the annual cost of a loan to a borrower and is expressed as a percentage APR ...
If you’re shopping for a mortgage, the annual percentage rate (APR) is a good way to compare our mortgage rates against other mortgage lenders. Interest rate vs. APR – what’s the difference? You’ll see these 2 terms when you start comparing mortgage rates. While both are expressed as...
A mortgage is a loan extended to you by a lender for buying a home. You have many years to pay back the mortgage, but it will accrue interest during that time.