Financial Terms Glossary

Clear, plain-English definitions of the financial terms you'll encounter when taking out a loan, buying a home, or managing debt.

Amortization

How loan payments are split between principal and interest over time.

APR

Annual Percentage Rate — the true yearly cost of borrowing including fees.

PITI

Principal, Interest, Taxes & Insurance — the four components of a mortgage payment.

DTI

Debt-to-Income Ratio — how lenders measure your ability to repay a loan.

PMI

Private Mortgage Insurance — required when your down payment is under 20%.