• APR (Annual Percentage Rate): A term used in the Truth-in-Lending Act to represent the percentage relationship of the total finance charge to the amount of the loan. The APR reflects the cost of your mortgage loan as a yearly rate. It will be higher than the interest rate stated on the Promissory Note because it includes, in addition to the interest rate, loan fees.
  

• LTV (Loan to Value Ratio): A term used to define the amount of a mortgage loan compared to the real estate's appraised value, expressed as a percentage. The conventional, non-insured lending standard is an 80% LTV, which reflects a 20% down payment. Any loan amount in excess of an 80% LTV is subject to private mortgage insurance.
  

• Caps: A term used when defining adjustable rate mortgage (ARM) loan interest rate changes, often expressed as "X/Y." In this example, "X" would represent the maximum amount an ARM could change per adjustment period (i.e. annually for a One-Year ARM), while "Y" would represent the maximum amount an ARM could change for the life of the mortgage loan. Changes in the interest rates could represent increases or decreases.