09/20/2026
How to keep the home buying process simple?
For many buying a home is new and intimidating. But like everything else in life, the more you know about the process the less intimidating it will seem.
Let's start by learning a few simple terms that are common in the mortgage and real estate industry.
ps.... for a complete list of terms, click the link below.
Escrow: A separate account your loan servicer manages to collect and pay your property taxes and homeowner's insurance. A portion of your monthly mortgage payment goes into escrow each month. When your tax or insurance bill comes due, the servicer pays it from this account.
Discount Points: Upfront fees paid to the lender to permanently lower your interest rate. One point = 1% of the loan amount. Generally, each point reduces the rate by about 0.25%, though this varies. Paying points makes sense if you plan to keep the loan long enough to recoup the upfront cost through monthly savings.
Plain-English definitions for over 90 mortgage terms, from APR to underwriting. A free glossary from Quazel Mortgage to help you understand your loan.
