Mortgage Glossary
Index
A published interest rate lenders used to determine the cost of borrowing money, including the changing rates on adjustable rate mortgages (ARMs). Some commonly used indices include the One-Year Treasury Index, the London Interbank Offered Rate (LIBOR), and the 11th District Cost of Funds (COFI).
Initial Monthly Payment
Upon closing, you will be provided with the monthly mortgage payment for your loan. An escrow analysis is completed after closing and based on the findings (i.e., changes to property taxes and homeowners insurance), the monthly payment could be subject to change. Ask your mortgage representative for an estimate of your PITI before closing.
Interest Only Mortgage
The amount you pay to borrow money from a lender, calculated as a percentage of the amount borrowed.
Interest Rate
The amount of your estimated total savings from buying instead of renting, invested at a rate of 8% for the number of years you plan to own your home. See our Rent vs. Buy Calculator to compute your estimated savings.
Investment-Related Savings
The amount of your estimated total savings from buying instead of renting, invested at a rate of 8% for the number of years you plan to own your home. See our Rent vs. Buy Calculator to compute your estimated savings.
