APR
The annual percentage rate is a broader cost measure than note rate because it includes certain fees in an annualized format.
Glossary
Translate mortgage language into plain English before you compare quotes.
A glossary is most useful when it helps you read real documents and ask better questions. This page focuses on common terms that matter in calculators, quote sheets, and the actual loan process.
Best use
Pair this page with your documents.
Open the glossary while reading a Loan Estimate, closing-cost worksheet, or rate quote so terms do not blur together.
What it is not
Not a legal dictionary.
The goal is practical clarity, not exhaustive definitions or state-specific legal interpretation.
Common mortgage terms
Use these short definitions when reading the rest of the site or talking with lenders.
Discount points
Upfront charges paid to lower the interest rate. Points increase cash to close and only pay off if you keep the loan long enough.
Lender credit
A credit from the lender that reduces upfront cost, usually in exchange for a higher rate.
Cash to close
The total estimated money needed at closing after accounting for down payment, closing costs, prepaid items, and credits.
Escrow
An account used by the servicer to collect and pay items like property taxes and homeowners insurance.
Loan Estimate
The standardized disclosure lenders provide early in the process that outlines rate, payment, costs, cash to close, and key loan terms.
Closing Disclosure
The later-stage disclosure that shows final loan terms and closing costs before consummation.
Conforming limit
The loan-size ceiling used for many standard conventional loans. Loans above that range may be treated as jumbo.
LTV
Loan-to-value ratio. This measures the loan size relative to the property value or purchase price and often affects pricing and insurance.
Rate lock
An agreement that holds pricing for a defined period, subject to the lender’s lock terms and timing rules.
Prepaids
Items collected at closing for future expenses like insurance premiums and per-diem interest.
Mortgage insurance
Insurance that protects the lender or investor in certain low-equity scenarios. It can be monthly, upfront, or both depending on the program.
Document-reading shortcuts
These pair especially well with the glossary when you are comparing quotes.
Quote Comparison Tool
Use the glossary and the side-by-side quote table together.
Mortgage Rates GuideUnderstand how rate, APR, points, and loan type interact.
Closing Cost CalculatorSee how prepaid items and lender fees affect total cash to close.
Rates pageReview the benchmark and quote-comparison checklist.