Principal and Interest
The core loan payment that repays borrowed principal plus interest charged by the lender.
Read definitionGlossary
Mortgage Glossary
Plain-English definitions for mortgage calculator terms.
Last updated 2026-05-04. Educational planning only.
Escrow
A payment bucket commonly used for property taxes and homeowners insurance.
Read definitionPMI
Private mortgage insurance that may apply when the down payment is below a lender threshold.
Read definitionHOA Fee
A homeowners association fee that can materially affect monthly affordability.
Read definitionProperty Tax
A local tax based on property value or assessment rules.
Read definitionHomeowners Insurance
Insurance coverage for the home and related risks, typically required by lenders.
Read definitionClosing Costs
Upfront purchase costs beyond the down payment.
Read definitionDebt-to-Income Ratio
A ratio comparing monthly debt obligations to gross monthly income.
Read definitionFront-End Ratio
Housing cost divided by gross monthly income.
Read definitionBack-End Ratio
Housing cost plus other debt divided by gross monthly income.
Read definitionCash Reserves
Money kept after closing for emergencies and irregular expenses.
Read definitionMortgage Points
Upfront costs that may reduce the interest rate or change loan economics.
Read definitionAPR vs Interest Rate
APR reflects broader borrowing cost while the interest rate drives the monthly interest calculation.
Read definitionFixed-Rate Mortgage
A loan where the interest rate stays the same through the repayment term.
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