Housing

• With a fixed-rate mortgage, your interest rate remains constant throughout the term of the loan.
• If you take out an adjustable-rate mortgage (ARM), the interest rate you pay can vary, sometimes dramatically. 
• Government-backed mortgages are insured by agencies such as the Federal Housing Administration (FHA) or Veterans Affairs (VA).
• Conventional loans are not insured or guaranteed by the government.

Your down payment is the amount paid upfront when purchasing a home.

The Annual Percentage Rate (APR) is your total yearly cost of borrowing. Your APR includes both interest payments and any additional fees or charges associated with the loan.

Your interest rate represents the cost a lender charges you to use its money. It is the annual percentage of the total loan amount that you have to pay to the lender on the money you’ve borrowed, in addition to repayment of the principal.

Your principal is the original amount of money borrowed, separate from interest and fees. As you pay down your loan, part of each payment goes toward your principal and another part goes toward interest.

The loan term is the length of your mortgage repayment period.

Closing costs are fees associated with finalizing a mortgage loan.

Escrow is an account used to hold money during the sale of a home. Homeowners can also use an escrow account to spread out property tax and insurance payments.