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Speak Mortgage

Mortgage words, translated.

Mortgages have enough jargon. Here’s what it actually means.

Explore the Mortgage Dictionary→

APR

Annual Percentage Rate (APR). A broader measure of borrowing cost that reflects the interest rate plus certain applicable finance charges. APR can help consumers compare loan costs.

DTI

Debt-to-Income Ratio (DTI). A ratio comparing applicable monthly debt obligations with gross monthly qualifying income.

Escrow

Escrow. An arrangement in which a third party holds money or documents for a transaction. In mortgage servicing, an escrow account may also collect funds for expenses such as property taxes and homeowners insurance.

LTV

Loan-to-Value (LTV). A ratio comparing the mortgage amount with the property's applicable value.

Discount Points

Discount Points. Upfront charges associated with obtaining a particular mortgage interest rate. One point generally equals 1% of the loan amount.

Clear to Close

Clear to Close. A term commonly used when the lender has completed required underwriting review and the loan can proceed toward closing, subject to any remaining closing requirements.

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