Mortgage
Names and abbreviations on this page
CFPB — Consumer Financial Protection Bureau. United States regulator for consumer financial products.
Housing terms & practical skills
What it means
A mortgage loan is borrowing secured by real property. The borrower repays according to the loan terms, and the property serves as collateral. Homeownership costs extend beyond the loan payment, including taxes, insurance, upkeep and sometimes association charges.
Related skills
Read the offerIdentify the rate type, loan term and required payments.
Compare complete costsSeparate principal and interest from taxes, insurance and other charges.
Plan resilienceConsider how a change in income or costs would affect payments.
An everyday example
A quoted principal-and-interest payment of $1,400 is not a complete housing budget if taxes, insurance and maintenance are separate. List those items before comparing ownership with renting.
What to check
Approval is not a guarantee that a payment fits your circumstances. Review the actual disclosures and seek qualified help for unclear terms.