Rhonda Asks… Can you help me understand the alphabet soup of lending?

We do seem to love our acronyms in the home lending business. Here are a few of the more common ones that are useful to know:

PITI stands Colorful letters coming out of home cook soup bowl on wood deckfor principal, interest, taxes and insurance. It’s everything that’s included in your monthly house payment.

GFE means good faith estimate. As a lender, I’m required to provide you with a good faith estimate of what your home loan will cost you both to acquire the loan and to maintain ownership of the home.

DTI is short for debt-to-income ratio, one of the key measures of how much you can afford to pay each month — and, therefore, how much you can afford to borrow.

PMI is private mortgage insurance, required for home buyers making a down payment of less than 20 percent.

Are there other lending terms you don’t understand? Give me a call and I’ll be happy to go over them with you. 303-696-6933.

Meet Cheryl!

About Cheryl

As a successful business owner and community leader, Cheryl Braunschweiger is known and respected for getting things done with a degree of skill and enthusiasm that bring out the best in those around her - colleagues, clients and friends. The name of her business, ALMC Mortgage, reflects Cheryl's philosophy and personality. She says it stands for All Loans Must Close –a reflection of her determination to do whatever it takes to serve her clients. Cheryl has been in the mortgage lending business for 20 years. Read More About Cheryl
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