Pricing and payment terms
Annual percentage rate is a comparison measure that incorporates interest and certain finance charges; it is not the note rate used directly for monthly principal and interest. Points are upfront amounts tied to loan pricing. A lender credit generally offsets closing cost in exchange for different pricing.
Amortization describes how scheduled payments allocate between interest and principal over time. Negative amortization means the balance can grow.
- Note rate
- Annual percentage rate
- Points
- Lender credit
- Amortization
Servicing and risk terms
Escrow is money collected with the payment for specified taxes and insurance. Forbearance temporarily changes or pauses required payments but does not automatically erase the amount owed. Acceleration can make the full balance due after specified defaults.
Read the controlling disclosure and contract because a short definition cannot capture every product condition.
Locate each term in an actual disclosure and write the specific amount, date, or condition that applies.