If you\u2019ve ever felt overwhelmed by mortgage lingo, you\u2019re not alone. The home loan process comes with a language of its own\u2014but understanding a few key terms can make everything feel a lot less intimidating.<\/p>\n\n\n\n
APR is the total cost of borrowing, expressed as a yearly rate. It includes the interest rate plus<\/em> fees like points and lender charges. It gives you a better sense of the loan\u2019s true cost over time.<\/p>\n\n\n\n If your down payment is less than 20%, you may have to pay PMI. This protects the lender in case you default. The good news? It can usually be removed once you reach 20% equity.<\/p>\n\n\n\n Your escrow account holds funds for property taxes and homeowners insurance. You pay into it monthly as part of your mortgage payment, and your lender pays the bills on your behalf.<\/p>\n\n\n\n These are the fees and expenses due at the end of the transaction\u2014things like loan origination, title fees, and prepaid taxes. They typically range from 2% to 5% of the home\u2019s purchase price.<\/p>\n\n\n\n This is the process of paying off your loan over time through equal monthly payments, which cover both interest and principal. In the early years, a larger portion goes toward interest.<\/p>\n\n\n\n The more you understand these terms, the more confident you\u2019ll feel during the homebuying process\u2014and your lender is here to walk you through every step.<\/p>\n","protected":false},"excerpt":{"rendered":" If you\u2019ve ever felt overwhelmed by mortgage lingo, you\u2019re not alone. The home loan process comes with a language of its own\u2014but understanding a few key terms can make everything feel a lot less intimidating. \ud83d\udcc9 APR (Annual Percentage Rate) APR is the total cost of borrowing, expressed as a yearly rate. It includes the … Continue reading Mortgage Terms Explained: From APR to Escrow<\/span> \ud83d\udd10 PMI (Private Mortgage Insurance)<\/h3>\n\n\n\n
\ud83c\udfe6 Escrow<\/h3>\n\n\n\n
\ud83e\uddfe Closing Costs<\/h3>\n\n\n\n
\ud83d\udcbc Amortization<\/h3>\n\n\n\n