5 Homebuying Acronyms You Need to Know
Paul Tosello
Looking for a Residential Real Estate Expert? Meet Paul, a Realtor with 37 years of experience and a background in residential construction...
Looking for a Residential Real Estate Expert? Meet Paul, a Realtor with 37 years of experience and a background in residential construction...
APR - Annual Percentage Rate
Annual cost of borrowing money based on the loan amount, interest rate and other fees.
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FRM - Fixed Rate Mortgage
Interest rate that does not change during the entire term of your loan
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DTI - Debt to Income
Percentage of your monthly income that goes toward your monthly debt payments.
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PMI - Private Mortgage Insurance
Insurance that protects lenders from losses if a homeowner is unable to pay their mortgage. It is required for homeowners who make down payments less than 20% of their home purchase price.
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P&I - Principal and Interest
Principal and interest are the portions of your monthly mortgage payment that go toward paying off the money you borrowed to buy your home.
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Why These Are Important to Know
- Learning the lingo of home buying is an important part of feeling successful when buying a home.
- From APR to P&I, you need to know the acronyms that will come up along the way, and what they mean when you hear them.
- Your local professionals are here to help you feel confident and informed from start to finish…and this infographic will help you as you go.
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