Mortgage terminology
Get clarity on the unique language of mortgage loans
Featured articles:
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 (DTI): What is it and how is it calculated?
Your debt-to-income ratio measures the difference between your obligations and your income. Learn how to calculate DTI and what it means for mortgages.
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8-minute read
Buydown: A way to reduce interest rates
Buydowns are methods used by buyers and sellers to lower interest rates in the early years of a new mortgage. Find out if a buydown is right for you.
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6-minute read
Alienation clause in real estate: What it means and why it matters
An alienation clause requires a mortgage to be paid off when a home is sold or transferred. Learn how it works, common exceptions, and when it applies.
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5-minute read
FHLMC: Freddie Mac explained
The Federal Home Loan Mortgage Corp., better known as Freddie Mac, buys conforming conventional loans from private lenders to keep the mortgage market liquid.
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6-minute read
Float-down option: Can it lower your mortgage rate?
Want to protect yourself from higher mortgage rates? Read our article to learn all about the float-down option and how it can work with a mortgage rate lock....
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4-minute read
Interest rate floor: Definition and how it works
An interest rate floor is the lowest agreed-upon rate for adjustable-rate loan products. Learn how the interest rate floor works and its impact on your loan.
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5-minute read
What is a co-borrower? A beginner's guide
If you’re unable to get a mortgage on your own, adding a co-borrower may increase your chances of approval. Learn more about how adding a co-borrower can ...
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