Mortgage terminology
Get clarity on the unique language of mortgage loans
ARM vs. fixed-rate mortgage: What’s the difference?
ARMs (adjustable-rate mortgages) and fixed-rate mortgages have distinct pros and cons depending on your goals. Learn the key differences and how to decide.
Debt-to-income ratio: What it is and how to calculate it
Learn what debt-to-income ratio means, how to calculate DTI and what lenders may look for before you apply for a mortgage. Start planning your next step.
Featured resources
5-minute read
What is the NMLS, and why does it matter?
Learn what the NMLS is, why NMLS numbers matter, and how licensing works for mortgage loan originators. Use this guide before choosing a lender or applying.<...
Read more
6-minute read
What does collateral mean and how does it work?
Collateral is an asset used to secure a loan. If a borrower defaults, the lender can take the collateral to recover losses.
Read more
10-minute read
What is a mortgage note and why is it important?
Learn what a mortgage note is, what terms it includes, and how it differs from a mortgage or deed. Find out where to locate yours and what if it gets sold.
Read more
8-minute read
Mortgage underwriting: What it is and how the process works
Learn how mortgage underwriting works, what underwriters review, and how to avoid delays with a practical checklist. Start preparing for your loan.
Read more
10-minute read
What is a short sale in real estate? A guide to the process
A short sale may be a solution when a homeowner is in a dire financial situation and needs to sell their home for less than they owe. Learn about this option.
Read more
9-minute read
Manual underwriting: How it works for mortgages
Manual underwriting allows lenders to consider borrowers with thin credit, a high DTI, or unique finances. Learn how it works and what documents to prepare.
Read more