Mortgage Glossary
Understand the terminology used in the mortgage and real estate industry to make informed decisions.
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a financial index.
How Moe Can Help
I can help you evaluate if an ARM makes sense for your short-term goals and find the best introductory rates available.
Amortization
The process of paying off a debt over time through regular payments that include both principal and interest.
How Moe Can Help
I provide clear amortization schedules so you know exactly how much of your payment goes to principal vs. interest over the life of your loan.
Annual Percentage Rate (APR)
The total cost of borrowing, including the interest rate and other fees, expressed as a yearly percentage.
How Moe Can Help
I transparently break down the APR so you can accurately compare loan offers without hidden surprises.
Appraisal
An unbiased professional estimate of a property's fair market value.
How Moe Can Help
I coordinate with trusted appraisal management companies to ensure a fair and timely valuation of your property.
Asset-Based Loan
A loan where approval is based on liquid assets rather than traditional income.
How Moe Can Help
I specialize in asset depletion and asset-based programs for high-net-worth individuals and retirees.
Balloon Payment
A large, lump-sum payment due at the end of a loan term.
How Moe Can Help
I help you plan an exit strategy, such as refinancing or selling, well before your balloon payment is due.
Bank Statement Loan
A Non-QM loan that uses business or personal bank statements to verify income instead of tax returns.
How Moe Can Help
I structure bank statement loans specifically for self-employed borrowers, maximizing your qualifying income.
Bridge Loan
A short-term loan used until a person or company secures permanent financing or removes an existing obligation.
How Moe Can Help
I provide rapid bridge financing so you can secure a new property before selling your current one.
Buydown
A financing technique where the borrower or seller pays an upfront fee to lower the interest rate for a set period.
How Moe Can Help
I negotiate seller concessions to fund temporary or permanent rate buydowns, lowering your monthly payment.
Cash-Out Refinance
A new mortgage for a larger amount than the existing loan, allowing the borrower to take the difference in cash.
How Moe Can Help
I help you leverage your home equity to consolidate debt, fund renovations, or invest in additional properties.
Closing Costs
Fees and expenses paid by the buyer and seller at the closing of a real estate transaction.
How Moe Can Help
I provide a detailed Loan Estimate upfront and work to minimize lender fees to keep your cash-to-close low.
Conventional Loan
A mortgage not guaranteed or insured by any government agency, typically adhering to Fannie Mae or Freddie Mac guidelines.
How Moe Can Help
I offer highly competitive conventional rates and flexible terms for primary, secondary, and investment properties.
Credit Score
A numerical representation of a borrower's creditworthiness.
How Moe Can Help
I guide you on strategies to optimize your credit profile before applying to secure the best possible rate.
Debt-to-Income Ratio (DTI)
The percentage of your gross monthly income that goes toward paying debts.
How Moe Can Help
I analyze your income and liabilities to find loan programs that accommodate your specific DTI, even if it's high.
Discount Points
Upfront fees paid directly to the lender at closing in exchange for a reduced interest rate.
How Moe Can Help
I run break-even analyses to help you decide if paying points makes financial sense for your long-term plans.
Down Payment
The upfront portion of the purchase price paid in cash by the buyer.
How Moe Can Help
I offer programs with down payments as low as 0% for VA/USDA and 3% for conventional first-time buyers.
DSCR (Debt Service Coverage Ratio)
A metric used in real estate investing to measure a property's cash flow against its debt obligations.
How Moe Can Help
I provide DSCR loans for real estate investors that require no personal income verification, based purely on property cash flow.
Earnest Money
A deposit made by a buyer to demonstrate serious intent to purchase a property.
How Moe Can Help
I ensure your pre-approval is rock-solid so your earnest money is protected during the financing contingency period.
Equity
The difference between the current market value of a property and the outstanding balance of any liens.
How Moe Can Help
I help you unlock your trapped equity through cash-out refinances or HELOCs for wealth-building opportunities.
Escrow
A neutral third party that holds funds and documents during a real estate transaction.
How Moe Can Help
Through my partnership with Studio Escrow, I ensure a seamless, secure, and transparent closing process.
FHA Loan
A mortgage insured by the Federal Housing Administration, designed for low-to-moderate-income borrowers.
How Moe Can Help
I process FHA loans with flexible credit requirements, helping clients get approved even with past credit challenges.
Fixed-Rate Mortgage
A mortgage with an interest rate that remains the same for the entire life of the loan.
How Moe Can Help
I lock in competitive fixed rates to provide you with absolute payment stability and peace of mind.
HELOC (Home Equity Line of Credit)
A revolving credit line secured by your home's equity.
How Moe Can Help
I offer digital HELOCs that fund in days, giving you flexible access to cash without touching your first mortgage's low rate.
Interest-Only Loan
A loan where the borrower pays only the interest for a set period, after which principal payments begin.
How Moe Can Help
I structure I/O loans for high-net-worth clients and investors looking to maximize monthly cash flow.
Jumbo Loan
A mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA).
How Moe Can Help
I navigate complex income scenarios to secure competitive Jumbo financing for luxury properties.
Loan Estimate
A standardized document detailing the estimated terms, interest rate, and closing costs of a loan.
How Moe Can Help
I review your Loan Estimate with you line-by-line, ensuring complete transparency and no hidden fees.
Loan-to-Value Ratio (LTV)
The ratio of the loan amount to the appraised value of the property.
How Moe Can Help
I help structure your financing to optimize your LTV, potentially avoiding mortgage insurance.
Mortgage Broker
An independent intermediary who works with multiple lenders to find the best loan for a borrower.
How Moe Can Help
As an independent broker, I shop over 170 wholesale lenders to find the absolute best rate and program for your scenario.
Non-QM Loan
A Non-Qualified Mortgage that uses alternative methods for income verification.
How Moe Can Help
I specialize in Non-QM products like Bank Statement, 1099, and Asset Depletion loans for unconventional borrowers.
Pre-Approval
A lender's conditional commitment to grant a mortgage based on a preliminary review of your finances.
How Moe Can Help
I provide fully underwritten pre-approvals that give your offer the strength of a cash buyer.
Private Mortgage Insurance (PMI)
Insurance that protects the lender if the borrower defaults, usually required if the down payment is less than 20%.
How Moe Can Help
I explore options like lender-paid mortgage insurance (LPMI) or piggyback loans to minimize or eliminate your PMI.
Rate Lock
A guarantee from a lender that a specific interest rate will remain available for a set period.
How Moe Can Help
I actively monitor market trends to advise you on the optimal time to lock your rate for maximum savings.
Refinance
The process of replacing an existing mortgage with a new one.
How Moe Can Help
I constantly monitor your current rate against the market, proactively advising you when a refinance makes mathematical sense.
Underwriting
The process a lender uses to assess the risk of offering a loan to a borrower.
How Moe Can Help
I meticulously pre-underwrite your file before submission, ensuring a smooth, fast, and stress-free final approval.
VA Loan
A mortgage guaranteed by the Department of Veterans Affairs for eligible military service members.
How Moe Can Help
I honor our veterans by offering 0% down VA loans with highly competitive rates and no minimum FICO score overlays.