Highland Financial San Antonio, TX!

Commonly used mortgage terms may not be everyday language for you. Therefore take the time to familiarize your self with some of our everyday mortgage terms. Click on the word to find out what exactly it means

Amortization	Annual Percentage Rate (APR)	Bankruptcy	Bi-Weekly Mortgage	Equity
Escrow	Interest	Points	Principal	Valuable Interest Rate

Calculated monthly payments on your mortgage, including principal and interest.
The payments are designed to cover the current interest and to pay off the principal by the end of the loan term.

An amortization schedule shows the payment amounts, interest, principal, and remaining balance for
each month of the loan.

A number that represents the total annual cost of a mortgage.
It includes the interest rate as well as all other fees and costs associated with the loan, which usually means that the APR is higher than the declared interest rate.

Comparing the APR for several lenders allows you to compare actual costs and not just interest rate.

Any legal declaration that you are unable to pay all of your bills. A court will allow you to clear your debts by paying a percentage of each of them.
Federal taxes, student loans, and child support payments are not eluded in these provisions

Declaring bankruptcy is a serious decision; it severely damages your credit rating and remains on your
record for ten years.

A mortgage requiring payment two times a month rather than monthly.Each payment is half of what a monthly payment would be.
This can reduce a 30-year mortgage to 19 years and significantly reduces the amount of interest you pay over the life of the loan.

The difference between the market value of a home and the balance on the mortgage for that home.
An owner's equity grows as the mortgage is paid down and as the home appreciates.

An account created by the lender where money is collected from mortgage payments to cover annual
expenses such as property taxes and insurance.
The lender then makes these payments for you from the account when the bills become due.

The amount a lender charges for borrowing money.It is calculated as a percentage of the principal borrowed and may be fixed or variable.
Rates are usually tied to some standard index such as the Prime Rate or United States Treasury Bills.

Fees charged by the lender based on the loan amount. One point is equal to one percent of the principal amount.
Discount points are considered prepaid interest and reduce the interest rate on the loan; origination points cover the lenders cost of making the loan.

The original loan amount, or the amount of the loan that has not been paid yet.
It does not include interest, which is charged as a percentage of the principal.

An interest rate that rises and falls according to economic conditions.
Variable rate loans are usually tied to an index such as the Prime Rate or United States Treasury Bill and may change quarterly or annually.