Glossary
Every guide, comparison, calculator, and mortgage term we've published on this topic — 52 in total, written for people who have never bought a home.
- adjustable-rate mortgage (ARM)Glossary1 mina loan whose interest rate is fixed for a few years and can then move up or down
- AI Mortgage Assistant vs Human Loan Officer: What Each Is Actually ForGlossary6 min
- annual percentage rate (APR)Glossary1 minyour interest rate with the lender's fees folded in, so you can compare two loan offers fairly
- Approval Amount vs Affordability: The Gap That Creates House-Poor BuyersGlossary6 min
- automated underwriting system (AUS)Glossary1 minthe software a lender runs your file through to get a preliminary approve or deny answer in minutes
- Browse all questionsFAQ6 minStraight answers, no jargon.
- Buy Now vs Wait: How to Decide Without Guessing the MarketGlossary6 min
- Can I Qualify vs Should I Buy: Two Questions, Two Different AnswersGlossary6 min
- Certificate of Eligibility (COE)Glossary1 minthe document that proves you qualify to use a VA home loan benefit
- Closing Costs vs Cash to Close: The Number That Actually Leaves Your AccountGlossary6 min
- Closing Costs vs Down Payment: Two Very Different Cash RequirementsGlossary6 min
- Closing Disclosure (CD)Glossary1 minthe final five-page form showing your exact loan terms and cash needed, delivered at least three days before you sign
- combined loan-to-value (CLTV)Glossary1 minall the loans against the home added together, compared to what the home is worth
- Conditional Approval vs Clear to Close: Where You Actually StandGlossary6 min
- Condo vs Single-Family Home: The Financing Difference Nobody MentionsGlossary6 min
- Credit Score vs Mortgage Readiness: One Number Is Not the Whole FileGlossary6 min
- Credit Union vs Mortgage Company: Member Pricing vs Product DepthGlossary6 min
- debt-to-income ratio (DTI)Glossary1 minhow a lender measures your monthly bills as a percentage of your monthly income before taxes
- Department of Veterans Affairs loan (VA)Glossary1 mina loan for eligible veterans, active-duty service members, and some surviving spouses, usually with no down payment
- down payment assistance (DPA)Glossary1 mingrant or second-loan programs that help cover your down payment and closing costs
- earnest money deposit (EMD)Glossary1 minthe good-faith money you put down when your offer is accepted; it is credited back to you at closing
- Earnest Money vs Down Payment: Two Checks, Two PurposesGlossary6 min
- Education vs Pre-Approval: What to Do FirstGlossary6 min
- Federal Housing Administration loan (FHA)Glossary1 mina government-backed loan built for buyers with lower credit scores or smaller down payments
- FICO credit score (FICO)Glossary1 minthe 300–850 credit score most mortgage lenders actually pull, which is often different from the score in a free credit app
- first-time homebuyer (FTHB)Glossary1 minanyone who has not owned a home in the last three years — you can qualify again even if you owned before
- Full mortgage glossaryGlossary6 minA–Z, searchable.
- Home Search vs Financial Preparation: Which One Comes FirstGlossary6 min
- homeowners association (HOA)Glossary1 mina neighborhood or condo group that charges a monthly or yearly fee and sets community rules; lenders count that fee in your payment
- income-driven repayment (IBR)Glossary1 mina student loan plan that sets your payment based on your income; lenders treat these payments differently by program
- Lead Generation vs Buyer Readiness: Who the Tool Is Built ForGlossary6 min
- letter of explanation (LOE)Glossary1 mina short written note explaining something in your file, like a job gap or a large deposit
- Loan Estimate (LE)Glossary1 minthe standardized three-page form showing a lender's quoted rate, payment, and fees so you can compare offers
- Loan Estimate vs Closing Disclosure: The Two Documents That Govern Your LoanGlossary6 min
- loan-to-value (LTV)Glossary1 minhow much you are borrowing compared to what the home is worth — put 10% down and your loan-to-value is 90%
- Local Lender vs Online Lender: Speed, Price, and Who Answers at 7pmGlossary6 min
- Manual Underwriting vs AUS: When a Human Reads Your FileGlossary6 min
- Mortgage Broker vs Bank: Who Actually Gets You the Better Deal?Glossary6 min
- Mortgage Calculator vs Readiness Assessment: Math vs DiagnosisGlossary6 min
- mortgage insurance (MI)Glossary1 mina monthly fee added when your down payment is small; it protects the lender if the loan is not repaid
- mortgage insurance premium (MIP)Glossary1 minthe FHA version of mortgage insurance — an upfront fee plus a monthly fee added to your payment
- New Construction vs Existing Home: Price, Timeline, and the Fine PrintGlossary6 min
- Paying Off Debt vs Saving for a Down Payment: Where the Next Dollar GoesGlossary6 min
- Pre-Qualified vs Ready to Buy: Why One Doesn't Guarantee the OtherGlossary6 min
- principal, interest, taxes, and insurance (PITI)Glossary1 minthe four pieces that make up a full monthly house payment, not just the loan itself
- private mortgage insurance (PMI)Glossary1 minan extra monthly fee on conventional loans when you put down less than 20%; it protects the lender, not you, and can usually be removed later
- Rate Shopping vs Readiness Planning: Where the Savings Actually AreGlossary6 min
- Rent vs Buy: The Honest Math, Not the SloganGlossary6 min
- return on investment (ROI)Glossary1 minwhat you get back compared to what you put in
- Soft vs Hard Credit Pull: What Actually Affects Your ScoreGlossary6 min
- to be determined (TBD)Glossary1 minnot decided yet
- U.S. Department of Agriculture loan (USDA)Glossary1 mina no-down-payment loan for homes in eligible rural and small-town areas, with income limits