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
- FHA LoanA government-backed mortgage with lower down payment and credit requirements, aimed at first-time and lower-income buyers.
- MortgageA loan used to buy a home, where the property itself acts as collateral the lender can take if you stop paying.
- Down PaymentThe upfront cash you pay toward a home's price, with the rest covered by your mortgage loan.
- Pre-ApprovalA lender's written estimate of how much they will lend you, based on a review of your finances before you shop for a home.
- Mortgage InsuranceA charge that protects the lender if a borrower stops paying, required on certain low-down-payment and government-backed loans.
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Plain-English education — not personalized legal, tax, or investment advice.