5 Home Buying Acronyms You Need To Know

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  • APR (Annual Percentage Rate) - Annual cost of borrowing money based on the loan amount, interest rate, and certain other fees.

  • FRM (Fixed-Rate Mortgage) - Interest rate that does not change during the entire time of your loan.

  • DTI (Debt-To-Income) - Percentage of your monthly income that goes toward your monthly debt payments.

  • PMI (Private Mortgage Insurance) - Insurance that protects lenders from losses if a homeowner is unable to pay their mortgage. It is required for homeowners who make down payments less than 20% of the home purchase price.

  • P&I (Principal and Interest) - Principal and interest are the portions of your monthly mortgage payment that go toward paying off the money you borrowed to buy your home.

Learning the lingo of homebuying is an important part of feeling successful when buying a home.

From APR to P&I, you need to know the acronyms that will come up along the way, and what they mean when you hear them.

Your local professionals are here to help you feel confident and informed from start to finish…and this infographic will help you as you go.

Source - KCM (Keeping Current Matters)

Fawn Morgan