rate.Behind the numbers
THE RATE REFERENCE

Mortgage terms, in plain language.

Rate spread

The difference between a loan’s APR and the average prime offer rate for a comparable loan, measured in percentage points.

APOR

Average prime offer rate, a benchmark reflecting rates and other terms offered to borrowers on comparable mortgages.

Points and lender credits

Points are upfront charges that may reduce a rate. Lender credits reduce upfront costs and can involve a higher rate.

DTI and CLTV

Debt-to-income ratio compares debt payments with income. Combined loan-to-value compares total secured lending with property value.

Denial reasons

Reasons a lender reports for denying an application, such as debt-to-income ratio, credit history or collateral.