Annual Percentage Rate (APR):
A number that represents the amount of interest charged per year, plus any costs/fees that are associated with the loan. So, the APR is usually higher than the documented interest rate.

Appraisal:
An estimate of the value of a house by a licensed appraiser. An accurate appraisal is important for considering a home and a mortgage.

Appreciation:
The increase in value of a home. This can occur because of the market in which the house is built, improvements to the house, or simply inflation.

Closing Costs:
Fees that are charged in addition to the price of the house and taxes. These fees can include things like title insurance, survey charges, attorney fees, or documentation fees to name just a few.

Co-signer:
Another party who is responsible for the loan if the primary signer is unable to do so. A co-signer can help lower rates in some cases.

Depreciation:
The loss in the value of a home, or the opposite of appreciation, for the same reasons above.

Equity:
The difference between the appraised value for a home and the mortgage for the home.

Escrow:
An account created by a mortgage lender. The account covers annual expenses like insurance and taxes.

Fixed-Rate Mortgage:
An interest rate that remains constant for the life of the mortgage.

Foreclosure:
The process of a lender taking the property of a borrower who has defaulted on the loan in order to sell the property and cover the debt.

"Jumbo" mortgage:
A mortgage over the federal benchmark, currently $322,700 (single-family).

Points:
Fees charged by the lender, or 1% of the amount of the mortgage.

Variable Interest Rate:
An interest rate that fluctuates according to economic indices like the federal Prime Rate.