5 Homebuying Acronyms You Need to Know When Buying a Home

November 11, 2019
Last updated:
June 29, 2023
In This Article

When it comes to the world of homebuying in Washington, Oregon, Idaho California or Colorado there’s a certain lingo that’s unique to this realm. This can make it a bit difficult for buyers who are new to the homebuying game to follow and understand.

As such, it’s worthwhile for buyers to take a little bit of time to get to know some of the acronyms that are frequently used in the industry.

For instance, do you know what these acronyms mean?

APR – Annual percentage rate

This represents the annual cost of borrowing money based on the loan amount, interest rate, and any other applicable fees.

FRM – Fixed-rate mortgage

This type of home loan comes with an interest rate that remains fixed throughout the term and never changes. If rates are really low when you buy a home, it may be best to lock in at a low rate with a fixed-rate mortgage.

DTI – Debt-to-income ratio

Your DTI represents how much of your monthly income is dedicated to paying your monthly debt bills.

PMI – Private mortgage insurance

This type of insurance is required if you make less than a 20% down payment towards the purchase of your home. PMI protects lenders from losses if you are unable to pay your mortgage.

P&I  – Principal and interest

These represent the portion of your monthly mortgage payment that will go towards paying off the loan amount you borrowed to buy a home.

While these phrases might sound foreign to you when you first hear them, knowing what they are and what they mean can help you better understand the homebuying process.


Get an Instant Mortgage Rate Quote Today

Need a Home Loan?

If you’re in the market to buy a home, Sammamish Mortgage is available to help. We offer a wide variety of mortgage programs and tools with flexible qualification criteria. We’ve been helping buyers obtain the mortgages they need in Oregon, Washington, Colorado, California and Idaho for over 30 years, and we’d love to help you too. Please contact us today to get started.

Other Blogs You May Like
Most Popular Cities For Relocating in WA To Get a Better Deal on a Home
February 14, 2024
6 min read
Most Popular Cities For Relocating in WA To Get a Better Deal on a Home
Relocating to different cities in WA is often motivated by the cost of home prices. People don’t...
Best Cities To Invest In Real Estate In Colorado
January 30, 2024
6 min read
Best Cities To Invest In Real Estate In Colorado
Making a real estate investment is a big commitment. Here are the three top cities you should...
Show 48 more posts
from this category

Connect with a Mortgage Advisor Today!

Whether you’re buying a home or ready to refinance, our professionals can help.

Compare Mortgage Rates in Your Area Instantly

No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.

Subscribe to our newsletter