INDUSTRY INSIGHT
REAL ESTATE
SPONSORED CONTENT
LINDA DIBUCCI , REALTOR®
Fox Chapel Office
c 412.519.5800 | o 412.850.5404
[email protected] | piattsothebysrealty.com
Home Buying Acronyms
You Need to Know
F
or many, the idea of buying a new home can seem
overwhelming; the reality is the process is rather simple
once you understand the steps. Part of that understanding is
learning the most common acronyms used in buying a home. Here
is a quick reference list of the 5 most often used acronyms and how
they pertain to your transaction.
1. APR (Annual Percentage Rate) – APR is the total cost of
borrowing money; this includes the interest rate, closing costs and
other fees associated with the loan.
2. FRM (Fixed-Rate Mortgage) – A fixed-rate loan is one where the
interest rate remains the same over the life of the loan.
3. DTI (Debt to Income) – DTI is the percentage of your income
used to service all your recurring debt; this includes your mortgage,
credit cards, car loans and other loans or lines of credit.
4. PMI (Private Mortgage Insurance) – Loans for more than
80% of the home’s value are subject to PMI. This is insurance that
protects the lender in the event of borrower default, and every loan
with less than a 20% down payment will include PMI.
5. P&I (Principal and Interest) – P&I is the portion of your loan that
goes to pay down the principal of the loan amount. Other monthly
costs could include taxes, PMI, association fees and other costs that
are included in your payment but separate from P&I.
Real estate has a lot of terms. Understanding the most common
can take the mystery out of the home-buying process and provide
peace of mind as you search for your new home.
590 Old Mill Road, Fox Chapel | $1,195,000
6 bedrooms/6 full baths and 1 half
P I AT T S OT H E BY ’ S I N T E R N AT I O N A L R E A LT Y I 3 4 0 2 H A RT S R U N R OA D I G L E N S H AW, PA 1 5 1 1 6
Each Office is Independently Owned and Operated.
HAMPTON ❘ SPRING 2020
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