Adjustable-rate loans, also known as variable-rate loans, usually offer a lower initial interest rate than fixed-rate loans. The interest rate fluctuates over the life of the loan based on market conditions.The loan agreement generally sets maximum and minimum rates. When interest rates rise, so do your loan payments. When interest rates fall, your monthly payments lower.

Amortization is the process by which the bank determines how much of your payment is applied to interest on your loan and how much goes towards paying back the principal. In the early years of a loan, most of the payment is for interest, with the principal being reduced only slightly with each payment. Annual percentage rate (APR) is the cost of credit expressed as a yearly rate. The APR includes the interest rate, points, broker fees, and certain other credit charges that the borrower is required to pay.

 A Biweekly Mortgage is a mortgage that requires a payment every two weeks. Each is roughly half of what you would pay for a monthly payment. Paying every other week is the equivalent of making 13 monthly payments per year. Your mortgage amortizes much faster than it would with monthly payments.

 Broker, sometimes called a mortgage broker is someone in the business of arranging mortgages and other types of home loans, but does not actually lending the money. The broker's job is to get the borrower and the lender together.

 Closing or settlement is when the property is formally sold and ownership of the property is transferred to the buyer.
Debt Payments Ratio compares your total monthly debt payments to your income. Lenders often use this ratio to judge your ability to repay a loan. To calculate your debt payments ratio, add your total monthly debt payments(excluding utilities) and your expected total monthly mortgage payment then divide that by your gross monthly income. Many banks want you to have a debts payment ratio of 36% or less - that is the total of your bills is 36% of your monthly income.

 Equity is the difference between what your property is worth and how much you owe on your original mortgage.

FHA or Federal Housing Administration  is part of the U.S. Department of Housing & Urban Development (HUD). FHA insures loans made by private lenders sets nationwide standards for underwriting loans and housing construction.

Fixed-rate loans generally have repayment terms of 15, 20, or 30 years.  Interest rate and the monthly payments  stay the same during the life of the loan.

Home equity loan -- sometimes called a second mortgage -- is a loan using the equity in your house as collateral.

The interest rate is the cost of borrowing money expressed as a percentage rate. Interest rates can change because of market conditions.

Points or loan origination fees are fees charged by the lender for processing the loan. The fees are usually expressed as a percentage of the loan.

Principal is the amount you borrow to buy your house. This will be the purchase price minus your down payment. (If you borrow money to pay some of the closing costs, such as points, that becomes part of the principal as well.)   
Private mortgage insurance (PMI) protects the lender against a loss if a borrower doesn't pay back the loan. It is  required for loans in which the down payment is less than 20 percent of the sales price or, in a refinancing, when the amount financed is more than 80 percent of the value.

VA or Department of Veteran's Affairs is a U.S. government agency that provides loans made to military veterans to protect the lender if the borrower can not repay the loan.