Adjustable (or Variable) Rate Loans – A loan where the interest rate changes over the life of the loan.

Fixed-Rate Loans – A loan where the interest rate and monthly payments stay the same for the life of the loan.

Annual Percentage Rate (APR) – The annual cost of a loan (as a percentage), which includes interest rates, points and other charges you are required to pay.

Closing Costs – Additional expenses such as application fees, title examination, appraisal, etc., associated with the purchase of a home.

Points – Fees paid to the lender at closing which can lower your interest rate. One point equals one percent of the loan amount.

Private Mortgage Insurance (PMI) – Insurance provided by an outside company to protect the lender against nonpayment of a mortgage.

Escrow Account – A special account designed to hold money for property taxes and homeowner's insurance that is collected with your monthly home loan payment.