- Amortization. The schedule that pays the loan down over time.
- APR. A way to compare cost that includes certain fees, not the number your payment is built on.
- Appraisal. An independent opinion of value.
- COE. Certificate of Eligibility for a VA loan.
- Conforming. A conventional loan within the FHFA limit.
- DTI. Debt-to-income ratio.
- Escrow. Tax and insurance account, or the closing process.
- Funding fee. The one-time VA charge, unless you are exempt.
- IRRRL. VA streamline refinance of an existing VA loan.
- LTV. Loan divided by value.
- MIP. FHA mortgage insurance.
- NMLS. The licensing system. Look up companies and originators at nmlsconsumeraccess.org.
- P&I. Principal and interest. Taxes and insurance are extra.
- PMI. Private mortgage insurance on conventional loans.
- Points. One point is 1% of the loan amount.
- Pre-approval. A reviewed letter, stronger than a verbal estimate.
- Residual income. Money left after major expenses. VA underwriting uses it.
- Title. The legal right to the property, insured at closing.
- UFMIP. FHA’s upfront mortgage insurance premium.
Glossary
Glossary
Plain definitions for the words on this site. None of them is a rate quote or a promise of approval.
Questions
Straight answers
Where do I start if all of this is new?
The first-time buyer guide and the loan comparison.
Who reviews this page?
Patrick Crawford, NMLS #231625. NMLS #231625.
Can LenderBot define these?
Yes. Ask LenderBot from any page. It will not invent a rate.
What if a word is missing?
Use the contact block. We would rather define it than leave it fuzzy.
Is the glossary legal advice?
No.
Do definitions change?
Program rules do. The last-updated line on each page is the review date, not a lock.
Reviewed by Patrick Crawford, NMLS #231625 · Last updated October 28, 2026