Common Mortgage Acronyms Every Homebuyer Should Know

If you're buying your first home, you've likely encountered various confusing mortgage acronyms. Understanding this terminology is essential for anyone navigating the homebuying process, as it can impact your decisions. Here are 21 common mortgage acronyms to help ease your journey to homeownership.

• APR Annual Percentage Rate

• ARM Adjustable-Rate Mortgage

• AMI Area Median Income

• CD Closing Disclosure

• DTI Debt-to-Income Ratio

• DPA Down Payment Assistance (Program DAP)

• FHA Federal Housing Administration

• FMV Fair Market Value

• FRM Fixed-Rate Mortgage

• GSE Government-Sponsored Enterprises

• HELOC Home Equity Line of Credit

• HUD Housing and Urban Development

• LTV Loan-to-Value Ratio

• LE Loan Estimate

• MIP Mortgage Insurance Premium

• PITI Principal, Interest, Taxes, and Insurance

• PMI Private Mortgage Insurance

• QM Qualified Mortgage

• RESPA Real Estate Settlement Procedures Act

• TIL Truth in Lending Act

• VA Loan Veteran Administration Loan

Becoming familiar with these 21 common mortgage acronyms is an important step in your journey as a homebuyer. Keep this guide handy as you begin your homebuying process, and feel free to reach out to your Frandsen mortgage lender for any additional support you may need.