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 Interest
Mortgage interest that has built up over time but has not yet been paid.
- Amortization
Amortization is the gradual repayment pattern that reduces mortgage principal over time through scheduled payments.
- Amortization Schedule
An amortization schedule is a payment-by-payment table showing how much goes to principal, interest, and remaining balance.
- Balloon Payment
Large lump-sum mortgage payment due at a set point, often at maturity of a balloon loan.
- Biweekly Mortgage Payment
Mortgage payment method where payments are made every two weeks instead of once per month.
- Borrower Authorization
Borrower consent allowing a lender or settlement party to verify information needed for the mortgage file.
- Collateral
Property pledged to support mortgage repayment, giving the lender a claim if the loan is not repaid.
- Correspondent Lender
A correspondent lender is a lender that originates and often closes mortgages in its own name, then later sells them to a larger investor or aggregator.
- Credit Authorization
Borrower consent allowing a lender to obtain credit information for mortgage review.
- Daily Interest
Interest amount that accrues on a mortgage for each day the balance remains outstanding.
- Electronic Note (eNote)
An electronic note is a digital mortgage note that records the borrower's promise to repay without a paper original.
- 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.
- Fully Amortizing Loan
Mortgage structured so scheduled payments repay all principal and interest by the end of the term.
- Home Loan
A home loan is borrowed money used for a home purchase or refinance, usually secured by the property itself.
- Interest
Interest is the lender's charge for letting the borrower use money over time.
- 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 File
Complete mortgage record containing application data, documents, disclosures, underwriting, and closing information.
- Loan Number
Identifier assigned to a mortgage file for lender, servicer, disclosure, and payment tracking.
- Loan Officer
A loan officer is the lender-side professional who helps guide the borrower through the mortgage application and origination process.
- Loan Originator
Mortgage professional or company role involved in taking, arranging, or making a home-loan application.
- Loan Proceeds
Mortgage funds advanced by the lender and applied to the purchase, refinance, or payoff transaction.
- Loan Purpose
Reason for the mortgage request, such as purchase, refinance, cash-out refinance, or construction financing.
- Loan Term
Loan term is the length of time the mortgage is scheduled to run before full repayment.
- Maturity Date
Scheduled date when the mortgage must be fully paid according to the loan documents.
- Monthly Payment
Monthly payment is the amount the borrower is expected to pay each month under the mortgage terms.
- Mortgage
A mortgage is a home-secured loan and the legal arrangement that lets the property stand behind repayment.
- Mortgage Application
A mortgage application is the borrower's formal request for a home loan and the starting point for lender review.
- Mortgage Borrower
Person or entity obligated to repay a mortgage under the loan documents.
- Mortgage Broker
A mortgage broker helps a borrower shop or place a loan with lenders rather than funding the mortgage directly.
- Mortgage Commitment
Lender commitment to make a mortgage subject to stated terms, conditions, and closing requirements.
- Mortgage Holder
Party that holds mortgage-related rights in the debt or security interest, distinct from the servicer.
- Mortgage Lender
A mortgage lender is the bank, credit union, or other institution that provides the mortgage funds.
- Mortgage Note
Mortgage note is the mortgage-specific promissory note that states the borrower's repayment obligation.
- Mortgage Obligation
Borrower's legal duty to repay the mortgage debt and follow the loan terms.
- 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 Holder
Party entitled to enforce or receive payment under the mortgage note, depending on the loan records.
- Occupancy Statement
Borrower statement about intended property use, such as primary residence, second home, or investment property.
- Original Principal Balance
Starting mortgage principal balance when the loan closes before later payments change it.
- Payment Frequency
How often mortgage payments are scheduled or made, such as monthly or biweekly.
- Payment Schedule
Planned timing and amount pattern for required mortgage payments across the loan term.
- Payoff Amount
Amount required to satisfy the mortgage in full on a specific payoff date.
- Principal
Principal is the amount borrowed that still has to be repaid, excluding interest and most 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
A promissory note is the signed document in which the borrower promises to repay the mortgage debt under stated 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.
- Total Interest
Total mortgage interest paid over a period or across the full repayment schedule.
- Uniform Residential Loan Application
Standard mortgage application form used to collect borrower, income, asset, debt, and property information.