Mortgage Terms & Definitions

Definitions
Mortgage amount
Original or expected balance for your mortgage.
Interest rate
Annual interest rate for this mortgage.
Term in years
The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30
years.
Monthly payment
Monthly principal and interest payment (PI).
Total payments
Total of all monthly payments over the full term of the mortgage. This total payment amount assumes that there
are no prepayments of principal.
Total interest
Total of all interest paid over the full term of the mortgage. This total interest amount assumes that there are no
prepayments of principal.
Prepayment type
The frequency of prepayment. The options are: none, monthly, yearly, and onetime payment.
Prepayment amount
Amount that will be prepaid on your mortgage. This amount will be applied to the mortgage principal balance,
based on the prepayment type.
Start with payment
This is the payment number that your prepayments will begin with. For a one time payment, this is the payment
number that the single prepayment will be included in. All prepayments of principal are assumed to be received
by your lender in time to be included in the following month's interest calculation. If you choose to prepay with a
onetime payment for payment number ZERO, the prepayment is assume to happen before the first payment of
the loan.
Savings
Total amount of interest you will save by prepaying your mortgage