Glossary
Common terms used in mortgages and real estate—explained simply.
APR (Annual Percentage Rate)
A broader cost measure that can include fees as well as interest.
Deposit / Down Payment
The amount you pay upfront when buying a property.
Loan Term
The length of time you agree to borrow (e.g., 25 years).
Fixed Rate
An interest rate that stays the same for a set period.
Variable Rate
A rate that can change based on market conditions.
Amortization
The schedule showing how your loan is repaid over time.
Refinancing
Replacing your current mortgage with a new one, often to reduce cost or change terms.
Pre-approval
A lender's initial confirmation of how much you might borrow (subject to checks).
Closing Costs
Fees paid when completing a purchase (legal, taxes, valuation, etc.).
Equity
The value you own in a property (property value minus mortgage balance).