Mortgage Glossary / Glosario Hipotecario / 按揭术语表
- AmortizationThe process of paying off a loan over time with regular payments.
- Annual Percentage Rate (APR)The yearly cost of a loan, including interest and fees, shown as a percentage.
- AppraisalA professional assessment of a home’s market value.
- Closing CostsFees and expenses paid when finalizing a home purchase.
- Credit ScoreA number representing your creditworthiness, affecting loan approval and interest rates.
- Debt-to-Income Ratio (DTI)The percentage of your monthly income that goes toward debts.
- Down PaymentThe upfront cash you pay toward the home purchase price.
- Earnest MoneyA deposit showing the buyer’s commitment when making an offer on a home.
- EscrowA third party holds funds or documents until conditions of the sale are met.
- EquityThe value of your ownership in your home (home value minus loan balance).
- Fixed-Rate MortgageA loan with an interest rate that stays the same throughout the term.
- Homeowners InsuranceInsurance that covers your home and belongings against damage or loss.
- Interest RateThe percentage charged for borrowing money, paid to the lender.
- Loan EstimateA document from a lender detailing the terms and costs of a mortgage.
- Loan TermThe number of years you have to repay your mortgage (e.g., 30 years).
- PrincipalThe original amount borrowed or the balance of a loan.
- Private Mortgage Insurance (PMI)Insurance required when your down payment is less than 20%, protecting the lender if you default.
- Property TaxesTaxes paid to local government based on your property’s value.
- RefinancingReplacing an existing mortgage with a new loan, usually to lower rates or change terms.
- UnderwritingThe process a lender uses to assess risk and approve your loan application.