**Mortgage Calculator Definition of Terms**
**Total Mortgage Amount**

It is the amount that the borrower wishes to borrow. For example, 250000.

**Mortgage Term**

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**

Points is sum of origination and discount points of the mortgage loan. For example, 2.0 quotes by lender

**Miscellaneous Costs**

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.