Purchase price/sales price

The total amount paid by a buyer to a seller for the purchase of property.

Loan term

The period of time during which a loan must be repaid. For example, a 30-year fixed loan has a term of 30 years. Also called term. See also: maturity date.

Down payment

The amount of cash you pay toward the purchase of your home to make up the difference between the purchase price and your mortgage loan. Down payments often range between 5% and 20% of the sales price depending on many factors, including your loan, your lender and your credit history. How much of a down payment should you make?

Maximum points

An amount that borrowers typically choose to pay to the lender to lower the interest rate. The amount is collected at closing. One discount point equals one percentage point of the loan amount. Discount points are used to "buy" your interest rate lower, also known as a buydown. These points lower the interest rate for the entire term of the loan. Paying fewer discount points will result in a higher interest rate.

Loan type

The loan type refers to the loan product selected by the borrower at the time of application such as adjustable-rate mortgage or conventional 30-year fixed-rate mortgage.