A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Interest RateThe percentage a lender charges you to borrow money, or pays you to keep money deposited, over a set period.
- MortgageA loan used to buy a home, where the property itself acts as collateral the lender can take if you stop paying.
- PointsUpfront fees you can pay a lender at closing to lower your mortgage interest rate, each point costing one percent of the loan.
- Closing CostsThe fees paid to finalize a home purchase, covering things like appraisal, title work, and loan processing.
- RefinancingReplacing an existing loan with a new one, usually to get a lower rate, a different term, or a smaller monthly payment.
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Plain-English education — not personalized legal, tax, or investment advice.