Homeownership 101: Understanding Mortgage Industry Terminology
One of the most important, and confusing, decisions that people make is buying a home and taking out a Mortgage to pay for the house. There are many factors that come into play for people looking to buy a house. Factors such as location, size of house and the overall costs can play important roles in the decision-making process.
But the mortgage industry can be very confusing for most people. With the terminology used in discussing mortgages such as appraisals, equity, escrow, points and settlement costs, most common people can become easily confused. Mortgage professionals can speak in a language all of their own and the lingo used is unique. To help take the confusion out of the Mortgage process, we have come up with a listing of some of the more commonly used mortgage terms, and definitions in plain language. We hope this list is helpful to those that are looking to become new homeowners.