Mortgage Calculator Definition of Terms
Total Mortgage Amount
It is the amount that the borrower wishes to borrow. For example, 250000.
The number of years to amortized the mortgage loan. For example, 20, 25, or 30 years are common
Actual Interest Rate
The percentage of an amount of money which is paid for its use for a specified time. For example, 5.25 quotes by lender
Points is sum of origination and discount points of the mortgage loan. For example, 2.0 quotes by lender
Sum of closing costs and Title Insurance Costs. The Closing Costs are expenses incurred by the buyer/borrower and the seller
in a real estate or mortgage transaction. It can be non-recurring costs that include a one time charge for
points, appraisal fees, etc. or a prorating of recurring costs such as taxes and insurance incurred
while the new buyer/borrower owns the real estate. A title insurance policy which protects the insured
(purchaser and lender) against loss arising from defects in title.