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Understanding the meaning of mortgage acronyms and terminology
Here’s a quick explanation of what the main mortgage terms mean to help you start talking like a pro.
AI summary
Understanding mortgage terminology is crucial for Kiwi homebuyers. Key acronyms include LVR (Loan-to-Value Ratio), which compares your loan to the property's value, and DTI (Debt-to-Income Ratio), which measures your total debt against your earnings.
Other important concepts are UMI (Uncommitted Monthly Income), your cash surplus after expenses, and AML (Anti-Money Laundering) laws requiring identity checks. Your credit score is also vital, as it indicates your ability to manage debt and pay bills on time.
What does LVR mean?
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What does DTI mean?
Image provided by mortgages.co.nz
What does UMI mean?
Image provided by mortgages.co.nz
What does AML mean?
What is a credit score?
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