Like all good industries, the mortgage business uses a lot of abbreviations. And many times they can be confusing. So I wanted to give a list and explanation of abbreviations used. Here they are:
1. UW- this means Underwriting. Underwriting is the process of your loan being reviewed by an underwriter
2. GFE- Good Faith Estimate. This is the form that will have your fees and rate on it.
3. APR- Annual Percentage Rate- This is not your Interest Rate. This is actually a calculation of the rate, fees and mortgage insurance
4. TIL- Truth in Lending. This is the form that will give you your APR and the amount of interest you will pay over the life of the loan. Which can be scary to look at.
5. FHA- Federal Housing Administration. An FHA loan, is a mortgage backed by the Government.
6. USDA- United States Department of Agriculture. A USDA loan is a type of loan where the home falls in a “rural” area
7. HUD- U.S. Department of Housing and Urban Development. When HUD sells a foreclosed home, they are many times called “HUD Homes”.
8. NPS- Non Purchasing Spouse- On FHA and VA loans even if a spouse is not on the loan their debts must be taken into account with the Mortgage.
9. VOE- Verification of Employment
Don’t let mortgage abbreviations stress you out, just use this helpful list. Please call or email me with any questions.