This describes what your loan is and how long it will be.

A guarantee from the lender that the mortgage rate offered will remain available to the borrower for a specific amount of time. It essentially freezes your interest rate until the lock expires or you loan closes.

The total amount you agree to pay back.

The mortgage interest rate represents the percentage of the loan you have to pay yearly. This is the cost of borrowing the original loan amount. The rate itself is a result of both current market rates, the borrower’s down payment amount, and credit score.

Your monthly payment of principal + interest, not including monthly payments of taxes, insurance and homeowner association dues.

Principal is the amount you will borrow. Interest is the lender/servicers charge for lending you money.

Our estimate of how must you will pay each month for PMI or MI. Certain loans require PMI if you down payment is less than 20%. FHA loans require mortgage insurance even if your down payment is more than 20%.

The lender sets up an escrow account to pay certain property related expenses on your behave like property taxes and homeowners insurance.

Your estimated monthly payment on your loan. This includes mortgage insurance and escrow if applicable.

The fees you pay to you lender to get your loan closed and transfer ownership of the property.

The total amount you will need to bring to closing. You can see a breakdown of this on page two in the Calculation Cash to Close section.

Upfront charges for making the loan.

A fee you pay us at closing to lower your interest rate.

Third-party services required by your lender in order to get a loan. These services are also sometimes referred to as “settlement services.” You can shop separately for services listed in section C.

These are required services and you might save money by shopping for them separately.

Costs associated with the real estate transaction transferring the property to you

The lender may require you pay some items in advance of their due dates like interest, insurance, and property taxes.

The prepaid property tax and homeowner’s insurance deposited into the lender’s escrow account and set aside to pay your taxes and insurance.

Credit we give you at closing to pay your loan costs.

A break down of the money you bring to the closing table.

The annual percentage rate (APR) is the cost of credit over the term of the loan expressed as an annual rate. We calculate the APR using the interest rate, points, and finance charges itemized in the Closing Cost Details based on the info you provided.

An appraisal is used to decide how much your home is worth. It is conducted by an independent licensed real estate appraiser. You have a right to receive a copy.

You pay the homeowner’s insurance premium directly to the insurance company at or before closing.

Servicing is the handling of the loan on a day-to-day basis. The servicer will collect payments and answer any questions about you loan.