Mortgage basics is the starting lane for the site. These pages explain what a mortgage is, how the debt is repaid over time, which documents define the loan, and which people or companies sit between the borrower and the money.
- Accrued Mortgage Interest
Mortgage interest that has accumulated for a period but has not yet been paid.
- Allonge
Separate sheet attached to a paper mortgage note to carry one or more note endorsements.
- Amortization Period
Amortization period is the repayment span used to calculate payments that would reduce a mortgage balance to zero.
- Balloon Payment
Large lump-sum mortgage payment due at a set point, often at maturity of a balloon loan.
- Base Loan Amount
Mortgage principal before a financed program charge, most often used to distinguish an FHA base mortgage from the total amount after UFMIP.
- Biweekly Mortgage Payment
Payment pattern using one-half of the monthly mortgage amount every two weeks.
- Borrower Authorization
A borrower authorization permits specified mortgage participants to obtain, verify, or share information needed to process the loan.
- Collateral
Property pledged to support mortgage repayment, giving the lender a claim if the loan is not repaid.
- Correspondent Lender
Mortgage company that originates, funds, and closes loans in its own name for later sale to another lender or investor.
- Credit Authorization
A credit authorization permits a lender to obtain credit-report information for mortgage qualification, underwriting, or closing review.
- Daily Mortgage Interest
Mortgage interest attributable to one day under the loan's balance, rate, and day-count method.
- Electronic Note (eNote)
Electronically signed mortgage promissory note managed as a transferable record rather than as an original paper note.
- Extra Principal Payment
Optional mortgage payment amount directed to reduce principal beyond the scheduled payment.
- First Mortgage
Primary mortgage loan on a property, usually tied to the first lien position.
- First Payment Date
Date the first regular mortgage payment is due after closing.
- Home Loan
A home loan is residential-property financing used to purchase, refinance, or borrow against a home.
- Interest
Interest is the dollar charge for using mortgage funds, calculated from the rate, balance, and applicable time period.
- Interest Payment
Part of a mortgage payment that covers borrowing cost rather than reducing principal.
- Loan Amount
Mortgage principal amount borrowed at closing or requested in the loan application.
- Loan Application Packet
A loan application packet is the organized set of financial, identity, and transaction documents a borrower gathers to support mortgage review.
- Loan File
A loan file is the complete origination record used to document the application, verification, underwriting decision, disclosures, and closing.
- Loan Number
A loan number identifies a mortgage application or servicing account across the correct records, documents, communications, and payments.
- Loan Officer
Borrower-facing mortgage professional who discusses loan options, assists with the application, and coordinates the origination process.
- Loan Proceeds
Mortgage funds advanced at closing and disbursed for the approved purchase, refinance, construction, or equity transaction.
- Loan Purpose
Loan purpose classifies a mortgage as a purchase, refinance, cash-out refinance, construction, or other transaction and affects how it is reviewed.
- Loan Term
Loan term is the contractual span from mortgage origination to scheduled maturity.
- Maturity Date
Scheduled date when the mortgage must be fully paid according to the loan documents.
- Monthly Mortgage Payment
Monthly mortgage payment is the recurring amount due for loan repayment and any required escrow or insurance components.
- Mortgage
A mortgage is a home-secured borrowing arrangement that combines a repayment obligation with a claim against the property.
- Mortgage Amortization
Mortgage amortization is the scheduled process that reallocates each payment from interest toward principal as the balance declines.
- Mortgage Amortization Schedule
A mortgage amortization schedule shows each projected payment's principal, interest, and remaining-balance allocation.
- Mortgage Application
Borrower's formal request for mortgage credit and the information that starts lender disclosure and review obligations.
- Mortgage Borrower
Person or entity obligated to repay a mortgage under the loan documents.
- Mortgage Broker
Intermediary that helps a borrower compare or place a mortgage with lenders rather than extending the credit directly.
- Mortgage Commitment
A mortgage commitment states the lender's willingness to fund a loan under specified terms and conditions but may still require final items before closing.
- Mortgage Creditor
Party that extends covered mortgage credit and to whom the debt is initially payable at consummation.
- Mortgage Holder
Broad label for a party holding mortgage-loan rights, which may not identify the servicer, note holder, or loan owner precisely.
- Mortgage Lender
Bank, credit union, or nonbank company that extends and funds mortgage credit for a borrower.
- Mortgage Note
Mortgage-specific promissory note that records the borrower's repayment terms and works with a separate property security instrument.
- Mortgage Obligation
Borrower's legal duty to repay the mortgage debt and follow the loan terms.
- Mortgage Payment Frequency
How often mortgage payments are contractually due or voluntarily submitted.
- Mortgage Payment Schedule
Contractual sequence of mortgage payment amounts and due dates across the loan term.
- Mortgagee
Formal mortgage-document term for the lender-side party receiving the mortgage interest.
- Mortgagor
Formal mortgage-document term for the borrower or property owner granting the mortgage interest.
- Negative Amortization
Negative amortization happens when unpaid interest is added to the mortgage balance.
- Note Date
Date shown on the mortgage note that helps identify the signed repayment obligation.
- Note Endorsement
Signature and transfer language placed on a paper mortgage note or attached allonge to document note rights.
- Note Holder
Party with holder rights under the mortgage note, which may differ from the servicer or economic loan owner.
- Occupancy Statement
An occupancy statement records how the borrower intends to use the financed property and supports the lender's occupancy classification.
- Original Principal Balance
Starting mortgage principal balance when the loan closes before later payments change it.
- Payoff Amount
Amount required to satisfy the mortgage in full on a specific payoff date.
- Principal
Principal is the mortgage debt amount borrowed and still subject to repayment, separate from interest and other charges.
- Principal and Interest (P&I)
P&I is the principal-and-interest portion of a mortgage payment, excluding taxes, insurance, and other added housing costs.
- Principal Balance
Principal balance is the unpaid portion of the loan principal that the borrower still owes, not including future interest.
- Principal Payment
Part of a mortgage payment that reduces the unpaid loan balance.
- Promissory Note
Signed promise to repay a debt under stated principal, interest, payment, default, and maturity terms.
- Purchase Price
Contract price for the home before down payment, loan amount, and closing-cost math are applied.
- Reamortization
Recalculation of a mortgage payment schedule using the remaining balance, rate, and term.
- Remaining Term
Time left on the mortgage's scheduled repayment period before the maturity date.
- Scheduled Payment
Required mortgage payment amount due under the loan's current payment schedule.
- Secured Loan
Loan backed by collateral, such as a mortgage secured by a home.
- Semimonthly Mortgage Payment
Payment pattern using two mortgage transfers each calendar month, usually 24 per year.
- Total Mortgage Interest
Dollar amount of mortgage interest paid or projected over a stated repayment period.
- Uniform Residential Loan Application
The Uniform Residential Loan Application organizes borrower, property, transaction, and financial information for mortgage review.