Interest rate vs. APR
The interest rate prices the money you borrow. APR adds certain loan costs and spreads them over the loan term, which can make offers easier to compare. APR is not your monthly rate and it may not include every expense.
Loan literacy
Learn the language lenders use
Short, plain-English explanations so you can compare the whole deal, not just the biggest number on the page.
Discount points and lender credits
A discount point is upfront money paid for a lower rate; one point equals 1% of the loan amount. A lender credit moves the other way: it can reduce closing cash, usually in exchange for a higher rate. Compare the break-even, not just the headline rate.
DTI
Debt-to-income ratio divides monthly debt payments by gross monthly income. Lenders may look at housing debt alone and total debt. Their limits vary by program, credit profile and other factors.
LTV and CLTV
Loan-to-value compares one mortgage with the home's value. Combined LTV adds every loan secured by the home, such as a first mortgage plus a HELOC. Higher ratios can affect pricing, approval and mortgage insurance.
PMI
Private mortgage insurance can apply to a conventional loan with a smaller down payment. It protects the lender, not the borrower. Ask how much it costs, when it may be removed and whether a higher rate is being used instead.
Escrow
An escrow account collects part of property taxes and insurance with each mortgage payment, then pays those bills when due. Escrow can make the payment easier to budget, but the amount can change when taxes or premiums change.
Fixed vs. ARM
A fixed-rate loan keeps the note rate for the term. An adjustable-rate mortgage starts fixed for a set period, then can change on a schedule using an index, a margin and adjustment caps. Read all four — not only the opening rate.
HELOC draw and repayment
During the draw period, you can usually borrow, repay and borrow again up to the line limit; payments may be interest-only. In repayment, borrowing stops and principal payments begin. A variable rate can change payments in either period.
Rate locks
A rate lock holds specified pricing for a limited window while the loan closes. Confirm the rate, points, lock length, extension cost and what happens if the closing is delayed or the market improves.
Closing costs
Closing costs can include lender, appraisal, title, recording and settlement charges, plus prepaid taxes and insurance. Separate true fees from prepaid items, then compare official Loan Estimates on the same day.
What ‘last verified’ means
It is the time LoanMate observed a figure on the lender's public page — not a promise that the rate is still available. Rates can change without notice. Open the linked source and ask the lender to confirm the rate, APR, points, fees and eligibility.
Education, not advice. These explanations are general and cannot account for your full finances, taxes, goals or loan program. Confirm costs and terms in the lender's official disclosures before deciding.
Learn center
In-depth guides
Three long-form guides that build on the lessons above — detailed, plain-English walk-throughs with worked examples and today’s verified figures.
How much house can I afford?
Payment-to-income ratios, full PITI costs, and what today’s advertised rates do to your price range.Read the guide →Mortgage points vs rate
One point buys how much rate — and the break-even month that decides whether it pays.Read the guide →HELOC vs home equity loan
Reusable variable lines versus fixed lump sums: mechanics, rate risk, and fee patterns.Read the guide →Common questions
What is the difference between an interest rate and an APR?
The interest rate is the price of the borrowed money alone. Annual percentage rate adds certain loan costs and spreads them over the loan term, which can make offers easier to compare. APRs appear in LoanMate tables alongside note rates when a lender publishes both.
Are discount points worth paying?
Sometimes. One discount point is upfront cash equal to 1 percent of the loan amount, paid to lower the rate. Whether it pays depends on how long you keep the loan: divide the points’ cost by the monthly savings to find your break-even month.
What does ‘last verified’ mean on LoanMate?
Last verified is the time LoanMate observed a figure on the lender’s public page. It is not a promise that the rate is still available — rates can change without notice. Open the lender’s source link and confirm every term directly before deciding.