Mortgage glossary

Mortgage terms, in plain English

Short definitions for the words that appear next to mortgage rates and lender quotes. These are explanations, not loan recommendations.

Rate

The interest percentage you usually see first, such as 6.500%. It does not include every cost of the loan.

The annualized cost after certain loan fees are included. It can be more useful than the rate alone when comparing offers.

An upfront fee paid to lower the mortgage rate. One point usually equals 1% of the loan amount.

A lender agreement that keeps a quoted rate available for a set period. The written lock confirmation matters.

A mortgage above the conforming loan limit. Jumbo pricing can move differently from ordinary conforming loans.

Not a mortgage rate, but often a useful signal for the pressure facing mortgage rates.

The rate stays the same through the loan term. In the U.S., 30-year fixed and 15-year fixed loans are the most common.

A loan backed by the Federal Housing Administration, often used by buyers with lower down payments or shorter credit histories.

A loan program for eligible service members, veterans, and qualifying family members.