Monday, October 14, 2019 / by Nick Arndorfer
Learning the lingo of home buying is an important part of feeling successful when buying a home. From APR to P&I, you need to know the acronyms that will come up along the way, and what they mean when you hear them.
We are here to help you feel informed from start to finish, so here's a quick 'Home Buying Acronyms 101' lesson to increase your home buying confidence!
5 Home Buying Acronyms You Need To Know
APR (Annual Percentage Rate)
Annual cost of borrowing money based on the loan amount, interest rate, and certain other fees.
FRM (Fixed-Rate Mortgage)
Interest rate that doesn't change during the entire term of your loan.
Percentage of your monthly income that goes toward your monthly debt payments.
PMI (Private Mortgage Insurance)
Insurance that protects lenders from losses if a homeowner is unable to pay their mortgage. It's required for homebuyers who make down payments less than 20% of the home purchase price.
P&I (Principal and Interest)
Principal and interest are the portions of your monthly mortgage payment that go toward paying off the money you borrowed to buy your home.
If you have questions about the home buying process, we'd be thrilled to answer them and walk through it with you. Give us a call at (816) 224-5650!