They say all good things come in threes…Finish up your overview of the mortgage market with the third part of our mortgage terminology overview! All of those questions you had regarding terms that went way over your head can be answered! Just keep this list and our other mortgage terms lists on file as a reference for any of your questions!
- Amortization- the payment of principle over time.
- Debt-To-Income Ratio- A percentage expressed as a ratio of the borrower’s monthly payment on debt divided by their net income.
- Down Payment- A upfront payment made by the buyer towards the purchase price of the home.
- Escrow- The neutral third party that holds a portion of the funds during the loan process. This portion of funds can also include homeowners insurance and taxes.
- Loan-to-Value Ratio- The amount of loan borrowed relative to the value of the property.
After learning these terms you are well on your way to becoming an informed member of the mortgage market! Congrats! If studying these lists make you excited for homeownership or if they bring up any questions you have regarding homeownership, please feel free to reach out to a member of our Housing Buzz Team today.