A fee charged by a lender for making a real estate loan, usually a percentage of the loan amount such as one percent. Usually means the total monthly cost of owning the home and is used for qualification purposes. PMI is the private sector equivalent of FHA insurance on government loans. The amount of money borrowed. Also that portion of the monthly payment which repays the money borrowed.
Points typically reduce the interest rate charged on the mortgage.
Prepayment means paying off all or part of the mortgage loan before it is due. Most mortgages allow prepayment, but some charge a fee if you pay ahead of schedule. The selling price agreed upon by buyer and seller. Taxes Property taxes payable on the home to be purchased. Lenders will take the annual amount of property taxes to be paid on the home and divide by 12 to determine the property tax obligation on a monthly basis for qualifying purposes.