Credit Report: History of debt payment, total outstanding debt and highest balances achieved

Assets: Cash on hand and other liquid assets for the down payment such as savings accounts, CD's, stocks or other investments

30 Year Fixed Loan: Principal and interest payment is fixed for 30 year term

15 Year Fixed Loan: Principal and interest payment is fixed for 15 year term; rate is typically 1/4-1/2% lower than a 30 year fixed and payments are higher

7/23 Loan: Interest rate is fixed for 7 years and then goes to prevailing rate at that time for the next 23 years

5/25 Loan: Interest rate is fixed for 5 years and then goes to prevailing rate at that time for next 25 years

ARM Loans: Adjustable rate mortgage loans

1 Year ARM Loan: Interest rate adjusts every year within rate cap guidelines

6 Month ARM Loan: Interest rate adjusts every 6 months within rate cap guidelines

7/1 ARM Loan: Interest rate is fixed for 7 years and then becomes a 1 year adjustable rate loan

Good Faith Estimate: Breakdown of all closing costs; do not enter a transaction without one

5/1 ARM Loan: Interest rate is fixed for 5 years and then becomes a 1 year adjustable loan

COFI ARM Loan Cost of Funds Index (COFI): ARM is typically fixed for 3 months and then adjusts every month for the remainder of the term

NIV Loan (NIV): No Income Verification is the perfect loan for self- employed or those not showing tax returns; typically requires a 10% down payment

Investment Property Loan: Type of loan used when buying a property that will be rented out; often requires as little as 10% down

Cash Out Refinance: Refinancing mortgage loan to pay off debt and/or get cash back from the transaction

Mortgage Insurance (MI): With less than a 20% down payment, industry standards require mortgage insurance to protect lender in event of default

Point: Point is 1% of loan amount, which effectively lowers interest rate

Loan Orgination Fee: Typically 1% of loan amount; basically same as point

Title Work: A title company issues the legal Deed of Trust for your property; insures and guarantees you are sole legal owner