Mortgage terminology

Featured resources

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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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5-minute read

Co-borrower vs. co-signer: What's the difference?

If you need help getting a mortgage, a co-borrower or co-signer can bolster your application. Learn more about buying a home with a co-borrower or co-signer.

A beautiful house with a green front yard.

7-minute read

Do you have an underwater mortgage? Here are your options

You have an underwater mortgage if you owe more than your home is worth. Learn the early indicators and what to do if your mortgage is upside down.

House with a brick path, highlighting architectural details and landscaping in a residential setting.

5-minute read

What is a lien and how does it work?

A lien gives a lender or creditor the ability to claim a property to pay off a debt. Learn how they work and about other types of property debt.

Woman using a phone and a MacBook, potentially managing finances or conducting research online.

6-minute read

Loan principal definition and basics

The principal is the amount you borrowed for your loan, while interest is the fee for use of the loan. Learn how each makes up your monthly payment.

A brick olive-colored house, depicting a residential property.

5-minute read

Contingent vs. pending: What's the difference?

Home buyers sometimes confuse contingent versus pending. Learn the difference between pending and contingent and what the two statuses mean in real estate.

Colonial-style house in Massachusetts with a white exterior and greenery.

6-minute read

House deed: Defined and explained

A house deed is a physical document legally transferring ownership of real estate. Learn more about how house deeds affect sellers and buyers.

A charming row of houses with a white picket fence, creating a picturesque neighborhood scene.

6-minute read

Underwriting in the mortgage process, explained

Underwriting is a crucial part of the loan approval process. Learn about what underwriting is, how long it can take, and tips for a successful experience.

3-minute read

What is a transfer tax?

Transfer tax is a one-time fee for the transfer of property ownership. Learn how transfer tax is assessed, rules by state and local governments, and how it works.

A man and women unboxing cardboard boxes after moving into the new residence.

5-minute read

What is loan-to-value ratio (LTV) and how is it calculated?

Your loan-to-value ratio (LTV) measures your loan amount against the value of the home you're buying. Figure out how your LTV ratio is calculated.

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5-minute read

What is the prime rate and how does it work?

The prime rate is an index that helps determine rates on loans. But how does that work? In our guide, you’ll learn how the prime rate affects your wallet.

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12-minute read

When will mortgage rates go down?

Mortgage rates tend to fluctuate, but certain indicators can signal they’re going to drop. Learn when experts predict home interest rates to go down.

A yard with flowers, representing a beautiful home exterior.

5-minute read

What does collateral mean and how does it work?

Collateral is any asset a lender accepts to secure a loan. Explore different types of collateral loans, their pros and cons, and how to get one.

6-minute read

How a Fed rate drop affects home buyers and sellers

What’s the impact on home buyers and sellers when the federal funds rate drops? Learn how a Fed rate drop impacts interest rates and home loans.

Two individuals discussing a mortgage prequalification.

6-minute read

Mortgage prequalification: What is it and how does it work?

Mortgage prequalification gives you an estimate of the amount you can borrow to buy a house. Learn more about the loan prequalification process here.

A cozy house with a charming porch and a well-maintained lawn.

5-minute read

Truth in Lending Act (TILA): Defined and explained

The Truth iokay now let's see if that worked n Lending Act (TILA) protects consumers from unfair lending practices. Find out what TILA requires and how it can protect you.

A frustrated young couple, expressing frustration or stress.

6-minute read

What Is preforeclosure and how can you avoid it?

Preforeclosure is the first legal step toward foreclosure. Uncover tips on how to avoid foreclosure and discover some options available to homeowners.

A modern house in twilight, showcasing the architectural design of a modern residence.

4-minute read

Real property: Definition and examples

Real property is any land or anything attached to it that gives it value. Here’s how this concept works and why it matters to homeowners.