APR
Annual percentage rate: a broader annualized borrowing-cost measure calculated under applicable rules. Compare the actual disclosures and assumptions.
Make unfamiliar terms
feel more familiar.
DTI
Debt-to-income ratio: specified monthly payments divided by qualifying monthly income. It is not a complete household budget or approval decision.
Escrow
An arrangement that may collect amounts for specified bills such as property taxes and insurance. Ask which bills and adjustments apply.
Equity
The difference between a property’s value and debt against it in a stated example. Value and selling costs affect actual proceeds.
LTV
Loan-to-value ratio: a loan amount divided by the value used in the calculation, expressed as a percentage.
Principal
The loan balance component, distinct from interest charges.
Net pay
Pay remaining after the deductions shown for that pay period.
Gross pay
Pay before listed deductions, for the period indicated.
YTD
Year-to-date: cumulative amounts for the stated year through the reported date.
Tradeline
An account entry in a credit report. Read balance, payment, status and dates separately.
Cash to close
The amount needed to complete the transaction after the applicable costs, credits, deposits and adjustments.
Reserves
Funds counted under a lender/program’s applicable rules; distinct from deciding a personal emergency buffer.