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
- MortgageA loan used to buy a home, where the property itself acts as collateral the lender can take if you stop paying.
- EscrowA neutral holding account managed by a third party for funds like property taxes and insurance until they are due.
- Title InsuranceCoverage that protects you and the lender against hidden ownership claims or legal disputes over a property.
- AppraisalA professional estimate of a home's market value, required by lenders to confirm the price matches the loan amount.
- PointsUpfront fees you can pay a lender at closing to lower your mortgage interest rate, each point costing one percent of the loan.
- Down PaymentThe upfront cash you pay toward a home's price, with the rest covered by your mortgage loan.
More in Real Estate
Adjustable-Rate Mortgage (ARM)Annual Percentage Rate (APR)DeedEarnest MoneyFHA LoanFixed-Rate Mortgage
Plain-English education — not personalized legal, tax, or investment advice.