Terminology Tips

The APR is an interest rate reflecting the total cost of a mortgage for a whole year (annualized), rather than just the contract rate.

The APR includes all loan costs, such as origination and processing fees, in addition to the interest rate, allowing the borrower to compare different types of mortgages base on the annual cost for eac...

Loan-to-value (LTV) is a term used by lenders to illustrate how much the homeowner owes on their mortgage compared to the value of the home. For example, if someone purchases a property for $100,000, and has a $20,000 down payment, their mortgage would be $80,000, or 80% of the value of the home - an LTV ratio of 80%. The loans LTV i...

GIFT LETTER

This is a letter stating that the gift giver, typically an immediate family member, is making a gift of a specific amount to the gift receiver for the purpose of a down payment on a home.

Check with your lender for their specific requirements, but typically the letter must state the amount of the gift, the subject property...