Welcome to Equitable Lending
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🏡 Mortgage Terms Glossary
Your Guide to Common Home Loan Language – Simplified
At Equitable Lending, we believe informed borrowers make empowered decisions. Here’s a helpful glossary of key mortgage terms you may encounter during the home buying or refinancing process.
A–C
Amortization
The gradual repayment of a loan through regular payments of principal and interest over time.
Appraisal
A professional estimate of a property's market value, used by lenders to determine loan amount eligibility.
APR (Annual Percentage Rate)
The total cost of borrowing annually, including interest rate plus fees—expressed as a percentage.
ARM (Adjustable-Rate Mortgage)
A mortgage with an interest rate that changes at scheduled intervals, often after an initial fixed period.
Closing Costs
The various fees and charges (e.g., title, escrow, lender fees) paid at the closing of a real estate transaction.
Credit Score
A numerical rating that reflects a borrower's creditworthiness, based on payment history, debt, and other factors.
D–F
Debt-to-Income Ratio (DTI)
A measure of how much of your income goes toward debt payments. It helps lenders assess affordability.
Down Payment
The portion of the home price paid upfront, not financed through the mortgage. Often 3–20% of the purchase price.
Escrow
A third-party account that holds money for property taxes and insurance, collected with your mortgage payment.
Equity
The difference between your home's market value and the amount you owe on your mortgage.
Fixed-Rate Mortgage
A mortgage where the interest rate remains the same for the entire term of the loan.
FHA Loan
A government-backed loan from the Federal Housing Administration, designed for lower down payments and flexible qualifications.
G–M
Good Faith Estimate (GFE)
A former document (now replaced by the Loan Estimate) that outlined expected closing costs.
Home Inspection
An optional (but recommended) service where a professional evaluates the condition of the home before purchase.
Interest Rate
The percentage charged on the loan principal, excluding other fees.
Loan Estimate (LE)
A document provided by lenders outlining estimated rates, monthly payments, and closing costs.
Loan-to-Value Ratio (LTV)
The ratio of your loan amount compared to your home’s value. A lower LTV often means better rates.
Mortgage Insurance (PMI)
Required on conventional loans with down payments under 20%. Protects the lender in case of borrower default.
Mortgage Note
A legal document stating your promise to repay the mortgage, including terms and conditions.
N–Z
Pre-Approval
A lender’s written commitment to lend a certain amount based on a review of your credit and financials.
Principal
The amount of money you borrow to purchase a home, not including interest or fees.
Refinancing
Replacing your existing mortgage with a new one, usually to lower interest rates or change terms.
Title
A legal document showing who owns the property.
Underwriting
The lender’s process of evaluating your loan application, including income, assets, and credit history.
VA Loan
A mortgage program for eligible veterans and service members, offering no down payment and no PMI.
💡 Need Help Understanding a Term Not Listed Here?
We’re here to break down the jargon and walk you through each step of the mortgage process.
📞 Call us: (877)885-0111
At Equitable Lending, we specialize in providing Direct Mortgage Lending solutions including Mortgage Purchase Loans, Refinance Loans, Reverse Mortgages, 2nd Loans, and HELOCs. We can assist with
FHA Loans,
VA Loans, Conventional Loans, Jumbo Loans, Interest Only Loans, Bank Statement Loans, No Tax Return Mortgages, Profit & Loss Statement Only Mortgages, and P&L Mortgages. We operate in both Wholesale and Retail Lending. Additionally, we offer Non-QM Loans tailored for First Time Home Owners, Investors, Fix & Flip Mortgages, Construction, Development, DSCR, and more. Bring any other Lender's offer to us and we'll likely BEAT it! Our slogan is "Mortgages Made Easy". Visit us at 2824 South Robertson Boulevard, Los Angeles, CA 90034 or reach us at (877) 885-0111, Support@EquitableUSA.com, or by fax at (877) 499-3992. License Info: NMLS: 1124483 DRE: 01941713.