Know what the numbers and terms mean.
A clear comparison starts with shared definitions. Use these explanations to prepare questions for your lender, then check the actual documents for your loan.
APR
Annual percentage rate. A broader measure of financing cost that includes certain charges.
Cash to close
The estimated funds needed to complete closing after deposits, credits, and adjustments.
Closing Disclosure
The document showing final mortgage terms and closing costs for covered transactions.
CLTV
Combined loan-to-value. Total secured borrowing divided by the property value.
Discount point
An upfront charge equal to 1% of the loan amount per point, usually exchanged for a lower rate.
DTI
Debt-to-income ratio. Monthly debt payments divided by qualifying gross monthly income.
Escrow account
An account a servicer uses to collect and pay certain property expenses, commonly taxes and insurance.
HELOC
A revolving home equity line of credit secured by the property.
Lender credit
A credit toward closing costs, often in exchange for a higher interest rate.
Loan Estimate
A standardized summary of estimated mortgage terms, costs, and payments.
LTV
Loan-to-value. The loan amount divided by the property value used by the lender.
P&I
Principal and interest. The loan repayment portion of a mortgage payment.
Rate lock
An agreement to hold specified pricing for a period, subject to its conditions.
Recast
A recalculation of the required payment after a principal reduction when the loan’s terms allow it.
Servicer
The company that handles payments and certain account administration for the mortgage.
Underwriting
The lender’s evaluation of the borrower, property, and loan against its requirements.
Use the definitions in a real comparison
Walk through mortgage shopping · Compare rate and APR · Understand closing costs · Organize lender quotes.
For additional definitions and context, see the CFPB mortgage terms reference. General education, not a substitute for loan disclosures. Editorial standards.