28 Mortgage Terms, Explained

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Adjustable-Rate Mortgage, or ARM
Amortization
Annual Percentage Rate, or APR
Appraisal
Assets
Closing Costs
Co-Borrower
Conventional Loans
Credit Score
Debt-to-Income Ratio
Deed
Discount Points
Down Payment
Earnest Money Deposit
Equity
Escrow
In the homebuying process, the buyer places their earnest money deposit, plus other documentation and fees, into an escrow account, paid to the seller at closing. A homeowner may have an escrow account as well. A lender may require a borrower to pay a portion of their annual property taxes and insurance monthly into an escrow account. The lender disburses the payments at the appropriate time.
Fannie Mae/Freddie Mac
FHA
Fixed-Rate Mortgage
Foreclosure
Home Inspection
Homeowners Insurance
Interest Rate
Origination Fee
Preapproval
Principal
Private Mortgage Insurance, or PMI
Title
The Takeaway
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About the Author
Emma Diehl is a nationally-published journalist with expertise in finance, real estate, and technology. Her work has appeared on NPR, The Huffington Post, Technical.ly, and numerous local publications. When she's not covering the world of personal finance with SoFi, she's probably rollerblading or planning her next meal.
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