Glossary of Mortgage Terms
Explore commonly used mortgage terms that are frequently used by AmeriSave Mortgage.The loan principal is the amount you borrow from a lender. It's the part of your debt that gets smaller with each payment you make toward the original balance.
A loan term is the total length of time a borrower has to repay a mortgage, and it directly shapes monthly payments, total interest costs, and how fast you build equity in your home.
The loan-to-value ratio (LTV) is a percentage that lenders use to measure risk and set loan terms. It compares the amount you borrow on a mortgage to the appraised value of the property.
Before it was replaced by more reliable options, LIBOR was a benchmark interest rate that big banks around the world used to set the cost of borrowing money for adjustable-rate loans, like mortgages.
Loss mitigation is the term for the options and strategies that a mortgage servicer gives a homeowner to help them avoid losing their home when they can't make their monthly payments anymore.
A low-income home loan is a type of mortgage that helps families with incomes below the area median income level buy a home. It has flexible credit, a lower down payment, and rules about who can get one based on their income.
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