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Mortgage Words You Should Know

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The mortgage industry loves jargon and it can quickly confuse a real estate professional and all the moreso a borrower. The Fannie Mae Sellers Guide alone has 91 different acronyms and abbreviations.

The National Mortgage News recently offered up a few of the most common acronyms buyers and professionals should know while going through the homebuying process.

DTI: Debt to income

Underwriters turn to this ratio to determine if a borrower can financially meet a mortgage obligation.
UETA: Uniform Electronics Transactions Act

One of this Act’s purposes is to help harmonize state laws with the recognition of electronic signatures on documents.
PITI: Principal and interest plus taxes and insurance

Lenders often will break a borrower’s monthly payment down into this equation.
ATR: Ability to repay

The Dodd-Frank Act mandates that lenders ensure borrowers have the ability to repay their debt.
HOEPA: Home Ownership Equity and Protection Act

The law helps to determine when a loan becomes considered a high-cost mortgage.
SFHA: Special Flood Hazard Area

Lenders must monitor flood maps to see if the property has been placed into these zones.

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About The Author
John Doelman

John has been active in real estate for over 30 years. He is the broker for HBRES, Inc. His specialty is helping people purchase the NEW home of their dreams. He has worked for and directly with builders on the Treasure Coast in marketing and sales. John understands the new home process better than anyone, and passes that deep knowledge on to all of HBRES’ agents.

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