Vocabulary Words:

ESCROWS   includes your taxes and homeowners insurance in with your monthly payment - for example: divide your cost of homeowner's insurance by 12 and divide your taxes for the property by 12. Add each figure to your monthly payment.
ADJUSTABLE RATE   usually is fixed for 1 to 5 years and then will adjust monthly, every 3 months or every 6 months. Rates tend to be lower than fixed rates rates at the beginning.
FIXED RATE   is fixed for the life of the loan.
DEBT TO INCOME   Your salary divided into your outstanding debts.
LOAN TO VALUE   (LTV) the appraisal value and the amount of your loan - $80,000 appraised value and $80,000 loan value equals 100% LTV. $80,000 appraised value and $64,000 loan value equals 80% LTV.
CREDIT SCORE   comes from 3 different credit bureaus - (Transunion, Experian, Equifax) scores range from 300 to 800.
BI WEEKLY PAYMENT   instead of each month making one payment you pay every two weeks only half payments. But 2 months of the year an extra payment is made cutting your mortgage down over the life of the loan.