Mortgage Terms

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The mortgage industry has many unique and confusing terms and acronyms. We hope these descriptions help you to better understand the lending process.

Team Souther Glossary

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There are 3 names in this directory beginning with the letter H.
Homeowners Insurance
Lenders require borrowers to secure a home insurance policy to cover at least the value of their mortgage. Homeowner's insurance isn't included in the mortgage.

HUD-1 Settlement Statement
This recently revamped document comes just before closing and breaks down final closing and settlement costs for borrowers, who also get to see what the seller makes on the sale. The HUD-1 also spells out which charges can and cannot change from the Good Faith Estimate.

Hybrid Adjustable-Rate Mortgage (ARM)
Borrowers with a hybrid ARM have a fixed interest rate for the first three or five years of the loan term. After that, rates are capped annually as well as over the life of the loan.

Mortgage Calculator

Purchase price
Please enter here the amount you expect to pay for a home.
Enter a value
Down payment
Down payment is cash that you pay upfront for your home.
20.0%
Enter a value
Term in years
Number of years you have to pay.
years
Enter a value
Interest rate (per year)
The percentage of interest that you will pay on your mortgage for a specific term.
%
Enter a value
Property tax
Enter your property tax here if you know it.
per year
Enter a value
Home insurance
Most lenders require home insurance. Enter its price here.
per year
Enter a value
PMI
PMI is Private Mortgage Insurance which is usually required to pay if your Down payment less than 20%.
per month
Enter a value

Your total monthly payment


$

Principal & Interest
$
Home insurance
$
Property taxes
$
PMI
$