A–C

 

APR — Annual Percentage Rate The total cost of borrowing, including interest and lender fees, expressed as a yearly rate.

 

ARM — Adjustable‑Rate Mortgage A loan where the interest rate can change after an initial fixed period.

 

AUS — Automated Underwriting System Software lenders use to evaluate loan applications (e.g., DU, LP).

 

CD — Closing Disclosure A final document showing all loan terms, costs, and cash‑to‑close.

 

CFD / Mello‑Roos — Community Facilities District A special property tax used to fund new infrastructure in certain communities.

 

CLTV — Combined Loan‑to‑Value The total of all loans on a property divided by the home’s value.

 

COE — Certificate of Eligibility A VA document confirming a borrower’s eligibility for a VA loan.

 

Condo — Condominium A property type where the homeowner owns the unit but shares common areas.

 

D–F

 

DTI — Debt‑to‑Income Ratio The percentage of your monthly income that goes toward debt payments.

 

DU — Desktop Underwriter Fannie Mae’s automated underwriting system.

 

DSCR — Debt Service Coverage Ratio A measure used for investment loans comparing rental income to the mortgage payment.

 

ECOA — Equal Credit Opportunity Act A federal law ensuring fair lending practices.

 

EEM — Energy Efficient Mortgage A loan that allows financing for energy‑saving improvements.

 

FHA — Federal Housing Administration A government‑backed loan program with flexible credit and down payment requirements.

 

FICO — Fair Isaac Corporation Score The most widely used credit scoring model.

 

FRM — Fixed‑Rate Mortgage A loan with an interest rate that stays the same for the entire term.

 

G–L

 

GFE — Good Faith Estimate (older term) A former disclosure replaced by the Loan Estimate (LE).

 

HELOC — Home Equity Line of Credit A revolving credit line secured by your home’s equity.

 

HOA — Homeowners Association A community organization that manages shared areas and enforces rules.

 

HUD — U.S. Department of Housing and Urban Development Oversees FHA and housing regulations.

 

LE — Loan Estimate A disclosure showing estimated loan terms, costs, and monthly payments.

 

LTV — Loan‑to‑Value Ratio The loan amount divided by the home’s value.

 

M–P

 

MI — Mortgage Insurance Insurance that protects the lender when the borrower puts less than 20% down.

 

MIP — Mortgage Insurance Premium FHA’s version of mortgage insurance (upfront + monthly).

 

NMLS — Nationwide Mortgage Licensing System The licensing system for mortgage professionals.

 

P&I — Principal and Interest The core components of a mortgage payment.

 

PITI — Principal, Interest, Taxes, Insurance The full monthly housing payment.

 

PMI — Private Mortgage Insurance Mortgage insurance for Conventional loans.

 

PUD — Planned Unit Development A community with shared amenities and HOA oversight.

 

Q–T

 

QM — Qualified Mortgage A loan that meets federal ability‑to‑repay standards.

 

RESPA — Real Estate Settlement Procedures Act A law governing disclosures and settlement practices.

 

RT — Rate‑and‑Term Refinance A refinance that changes the rate, term, or both — without taking cash out.

 

TIL — Truth in Lending A disclosure law requiring lenders to show key loan terms.

 

TRID — TILA‑RESPA Integrated Disclosure The rules that created the Loan Estimate and Closing Disclosure.

 

U–Z

 

UFMIP — Upfront Mortgage Insurance Premium FHA’s one‑time upfront mortgage insurance fee.

 

URLA — Uniform Residential Loan Application The standard mortgage application form.

 

USDA — U.S. Department of Agriculture Loan A zero‑down loan program for eligible rural areas.

 

VA — Department of Veterans Affairs Loan A zero‑down loan program for eligible veterans and service members.