Every mortgage, loan, and home-financing term defined in plain English — from amortization to underwriting, A to Z.
Mortgages come with a lot of acronyms. This A–Z glossary defines every loan and home-financing term in plain English — APR, DTI, escrow, PITI, points, and the rest — with links to the Divito Lending guides and tools that go deeper. Jump to a letter using the bar below.
A loan with a rate that adjusts after a fixed intro period. See ARMs explained.
The schedule by which your loan balance is paid down over time through principal and interest.
The yearly cost of a loan including interest and most fees — useful for comparing offers apples-to-apples.
A licensed valuation of the property, required by most lenders before closing.
A loan that qualifies self-employed borrowers using bank deposits instead of tax returns. See bank statement loans.
Replacing your mortgage with a larger one and taking the difference in cash. See cash-out refinance.
The fees due at closing. See our Florida closing cost breakdown.
A loan within Fannie Mae / Freddie Mac limits, which earns the best conventional pricing.
A non-government loan. Compare conventional vs FHA or see conventional loans.
A number (typically 300–850) summarizing credit risk; higher scores earn better rates.
Your monthly debts divided by gross income — a key approval factor. See the 28% rule.
Upfront fees paid to lower your rate, each point costing 1% of the loan amount.
The cash you put toward the purchase price up front.
A buyer’s good-faith deposit when going under contract, separate from the down payment.
The portion of the home you own outright — its value minus what you still owe.
A lender-held account that pays your property taxes and insurance from monthly deposits.
Government-sponsored enterprises that buy conforming loans, setting much of the conventional rulebook.
A government-insured loan with low down payments and flexible credit. See FHA loans.
A loan whose interest rate never changes for the life of the loan.
Down-payment money from family, allowed with a documented gift letter.
A Home Equity Line of Credit — a revolving second loan against your equity. Compare HELOC vs cash-out.
A Florida program offering down-payment help to eligible workers. See Hometown Heroes.
Another name for an escrow account holding your taxes and insurance.
The cost of borrowing the principal, expressed as a yearly percentage.
A loan above conforming limits, common on higher-priced Florida homes. See jumbo loans.
A standardized three-page form showing a loan’s rate, payment, and costs within three days of applying.
The loan amount as a percentage of the property’s value.
A licensed intermediary who shops many lenders on your behalf. See broker vs banker.
Coverage protecting the lender on low-down-payment loans — PMI on conventional, MIP on FHA.
A documented review of your finances showing how much you can borrow. See pre-approval.
The Nationwide Multistate Licensing System that registers mortgage companies and loan originators.
A lender’s charge for processing and underwriting a new loan.
A property the borrower lives in, which qualifies for the best rates.
The four parts of a mortgage payment: Principal, Interest, Taxes, and Insurance.
See Discount Points — each point is 1% of the loan paid up front to buy down the rate.
A quick, informal estimate of borrowing power, lighter than a full pre-approval.
The amount you borrow and still owe, separate from interest.
A lender’s commitment to hold your quoted interest rate for a defined window.
Replacing your existing mortgage with a new one. See our refinance guide.
A loan letting homeowners 62+ convert equity to cash with no monthly payment. See reverse mortgages.
Closing-cost help the seller credits the buyer at closing.
A simplified refinance for FHA or VA loans with reduced documentation. See the VA IRRRL.
Federal disclosure rules requiring the Loan Estimate and Closing Disclosure.
A policy protecting against ownership defects, ordered at closing.
The lender’s full review of credit, income, assets, and the property before approval.
A zero-down loan for eligible rural and suburban Florida buyers. See USDA loans.
A zero-down loan for veterans and service members. See VA loans.
The income form used to verify wages for salaried borrowers; self-employed borrowers may use a bank statement loan instead.