Mortgage terms & meaning📚

Added: 2026-05-27

[00:00:00]Closing costs, important. Fees due at the end of a purchase, usually 2 to 5% of the purchase price. Mortgage [music] rate, important. The cost of borrowing money usually set by your lender based on credit, down payment, and property type. Equity, not important. The portion of the home's value that you actually own. Pre-approval, important. A lender's assessment of your income, your credit, and your assets to determine your loan amount. Assumable mortgage, not important. A home loan that can be transferred from one borrower to another. Principal, interest, taxes, and insurance, important. Principal, interest, taxes, and insurance combine into your monthly payment. PMI, important. Private mortgage insurance for down payments less than 20% cancelable when you reach 20% equity.

[00:00:49]Fixed-rate mortgage, important. A loan where the principal and interest payments remain the same for the life of the loan. I am a mortgage educator, and if you want to learn more real estate education, make sure to follow.