Mortgage Terms Glossary

Get a better understanding of home buying terms with this handy glossary.

Know the home buying lingo.

Buying a house can be confusing, especially with some of the terms used. This glossary can help you understand the home buying process easier.

A schedule on how the loan will be repaid, which typically includes amount borrowed, interest rate paid and term.
Written estimate of property’s current market value based on sales for comparable properties. 
Annual percentage rate; annual cost of loan that reflects interest, points paid, fees and mortgage insurance.
Adjustable rate mortgage; a mortgage with a fixed rate of interest for a short period of time, then adjusts based on an index.
Refinance of mortgage to get money from home’s equity.
Title free of liens and disputes.
Money needed to close the mortgage. These could include real estate, escrow or recording fees, transfer taxes or title insurance.
What lenders use to determine if the borrower has the ability to repay the loan, comparing monthly payments to monthly income.
Money that lets buyer know you’re serious about the purchase; goes into escrow account and is credited toward purchase.
An account borrowers are generally required to create for setting aside a percentage of the yearly taxes at loan closing. The lender manages the account, and it also contains additional money collected monthly, which is used to pay tax bills regularly.

Federal Housing Administration; agency that is a part of the U.S. Department of Housing and Urban development providing insurance on FHA mortgage loans.

A mortgage where the term of the loan and interest rate are negotiated and fixed for the duration of the loan. 

This is a loan that does not meet the general guidelines of government sponsored enterprises (such as Fannie Mae and Freddie Mac) and is therefore usually kept by the lending institution and not sold. These types of loans are used when the borrowers are self-employed, have unique income circumstance, or want to borrow outside the maximum loan amount. Examples of non-conforming loans are jumbo loans and bank statement loans.

A loan that is secured by collateral, usually real estate property or equipment. Can be used by a self-directed IRA to purchase real estate property.
Cost of processing, underwriting and funding a mortgage loan.
Private mortgage insurance; is required for conventional loans with less than 20% down payment.
Money paid upfront on a home loan to lower interest rate. Each point equals 1% of mortgage.
The amount borrowed from a lender for a home purchase.
Insurance obtained by the borrower to ensure that the property is clear of any liens.
The review process done by a lender to determine if the amount of risk under certain parameters is acceptable when offering a mortgage loan to a borrower.
Want help from a human?

Answer a few simple questions and choose your preferred contact method to get personalized recommendations — just for you, right from our experts.

What type of loan are you looking for?
Step 1

By clicking the Submit button you agree that you are providing an electronic signature expressly authorizing NASB to contact you by telephone at any of the telephone number(s) provided above using an automatic telephone dialing system or an artificial or prerecorded voice or via text/SMS message, even if the telephone number is assigned to a cellular telephone service or other service for which the called party is charged. NASB may also contact you via email using any email address you provided. This authorization overrides any previous registration on a federal, state or corporate Do Not Call Registry or any internal NASB privacy or solicitation preference you have previously expressed. You are not required to provide this authorization as a condition of purchasing any property, goods or services from NASB. As an alternative, you may call us directly at 866-627-7119 and we will process your request over the phone.

Jesse M.
Could not have asked for a better experience. Professional, courteous, and always keeping us in the loop.

Local banking. National lending.

More than $18 billion in home loans in the last decade

Based on lender data

More than 67,000 home loan customers in the last decade

Based on lender data

99% of customers would recommend NASB

Based on 2,615 NASB closed loan customer surveys from 1/1/2018 to 5/28/2019

Nationally competitive products. Individualized service.