A type of mortgage where the interest rate can change periodically based on an index, leading to fluctuations in monthly payments.

The process of paying off a loan over time through scheduled payments, including both principal and interest.

The yearly cost of borrowing expressed as a percentage, including the interest rate and other fees.

A fee charged to assess the market value of a property, typically required by lenders during the mortgage process.

A numerical representation of a borrower's creditworthiness, based on their credit history.

The ratio of a borrower's total monthly debts to their monthly income, used by lenders to assess risk.

An upfront payment made towards the purchase price of a home, usually expressed as a percentage of the total cost.

The difference between the current market value of a property and the amount still owed on the mortgage.

A financial arrangement where a third party holds funds for taxes, insurance, and other property-related expenses.

A loan insured by the Federal Housing Administration, typically designed for low-to-moderate-income borrowers.

A government-sponsored enterprise that provides liquidity to the mortgage market by buying loans from lenders.

Special loan programs offering benefits like lower down payments and reduced interest rates for first-time homebuyers.

A mortgage where the interest rate remains constant throughout the loan term, providing predictable monthly payments.

A legal process where a lender takes possession of a property when the borrower fails to make mortgage payments.

A government-sponsored enterprise that buys mortgages from lenders, providing liquidity in the housing market.

An assessment of a property's market value by a licensed appraiser, often required during the home-buying process.

A benchmark interest rate used to calculate the interest rate for adjustable-rate mortgages.

The percentage charged by a lender for borrowing money, typically expressed annually as a percentage of the loan balance.

The ratio of a loan amount to the appraised value of the property, used to determine risk.

The fixed percentage added to the index rate for adjustable-rate mortgages to determine the interest rate.

Recurring expenses such as housing, debts, and utilities, used by lenders to assess a borrower's financial stability.

A loan used to purchase a home, with the property serving as collateral until the loan is repaid.

Insurance that protects the lender if the borrower defaults on the loan, typically required for loans with less than 20% down payment.

The process of replacing an existing mortgage with a new one, usually to obtain better terms or lower interest rates.

The length of time agreed upon to repay a mortgage, typically 15, 20, or 30 years.

The original loan amount or remaining balance on a mortgage, excluding interest.

Taxes levied by local governments on real estate, typically based on the property's assessed value.

A loan available to homeowners 62 or older, allowing them to convert home equity into cash while still living in the home.

An additional loan taken against a property's equity, often used for home improvements or debt consolidation.

A type of mortgage offered to borrowers with lower credit scores, typically with higher interest rates.