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APR represents the annual cost of borrowing or the cost you pay for a loan including interest, insurance, and origination fees.

Amortization is the process of spreading out a loan into a series of fixed payments over time.

Equity refers to the owner's interest in an asset after all debts related to that asset are paid off.

Escrow is a financial arrangement where a third party holds and regulates payment of funds required for two parties involved in a given transaction.

A fixed-rate mortgage has a set interest rate for the entire term of the loan, which means that the monthly principal and interest payment remains the same.

An adjustable-rate mortgage has an interest rate that may change periodically depending on changes in a corresponding financial index that's associated with the loan.

The principal is the amount of money that is borrowed or still owed on a loan, not including the interest.

Interest is the cost of borrowing money from a lender. It is typically expressed as a percentage rate of the principal.

A down payment is an initial payment made when something is bought on credit, particularly significant in the context of buying a home.

PMI is a type of mortgage insurance that protects the lender if the borrower stops making payments on a loan. It is often required when down payments are less than 20% of the purchase price.

Refinancing is the replacement of an existing debt obligation with another debt obligation under different terms to secure better interest rates or terms.

Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the asset used as the collateral for the loan.

The LTV ratio is a financial term used by lenders to express the ratio of a loan to the value of the asset purchased.

Debt-to-Income Ratio is a personal finance measure that compares the amount of debt you have to your overall income, used by lenders to predict your ability to manage monthly payments and repay debts.