Home & Property Calculator Glossary

Amortization is the process of paying off a loan through fixed periodic payments that cover interest first and principal second.

Because interest is charged on the outstanding balance, early payments are mostly interest and late payments are mostly principal. An amortization schedule lists that split month by month.

Appreciation is the increase in a property's market value over time, usually quoted as an annual percentage.

Long-run US home price growth has historically been modest above inflation, and it varies sharply by metro. Rent-versus-buy outcomes are highly sensitive to the rate you assume.

APR expresses the total yearly cost of a loan, including the interest rate plus lender fees and points, as a single percentage.

APR is useful for comparing offers with different fee structures, but it assumes you keep the loan to term. If you plan to move or refinance early, the note rate and upfront fees matter more.

Assessed value is the value a local assessor assigns to your property for tax purposes, which is often lower than market value.

Many jurisdictions apply an assessment ratio to market value, then subtract exemptions before applying the tax rate. Assessments update on a set cycle, so they lag the market.

The break-even point is how long it takes for monthly savings to repay the upfront cost of a refinance, points purchase or buying instead of renting.

Divide total upfront cost by monthly savings. If you expect to move before that month, the upfront spend does not pay for itself.

Bulk density is the weight of a material per unit of volume, used to convert cubic yards into tons for delivery pricing.

Crushed stone commonly runs about 1.3–1.5 tons per cubic yard dry; moisture and gradation change that. Suppliers sell by weight, so density decides your invoice.

A cash-out refinance replaces your mortgage with a larger one and pays you the difference in cash.

It raises your balance, usually your rate, and your total interest cost, so it is best reserved for spending that adds value. Lenders normally cap cash-out at 80% LTV.

Closing costs are the one-time fees paid to finalize a home purchase or refinance, commonly 2%–5% of the purchase price.

They include lender origination, appraisal, title insurance, recording fees, transfer taxes and prepaid escrow items. Some are negotiable or shoppable; taxes and government fees are not.

Compaction is the reduction in volume when loose aggregate is tamped or driven on, typically 10%–25% for crushed stone.

Order loose volume above your finished volume so the compacted depth still meets spec. Angular crushed stone locks together better than rounded pea gravel.

A contingency budget is money set aside for unknowns discovered during a renovation, typically 10%–20% of the project cost.

Older homes, structural changes and anything behind a wall justify the higher end. Without a contingency, a single surprise turns into a stalled project.

Cost per square foot is total project or material cost divided by the area covered, used to compare quotes and budgets.

It is only comparable when the scope matches: labor, removal, prep and finishes must be included or excluded on both sides of the comparison.

A cubic yard is 27 cubic feet — the standard bulk unit for ordering concrete, gravel, sand, soil and mulch in the US.

Convert by finding volume in cubic feet (length x width x depth, all in feet) and dividing by 27. Depth in inches must be divided by 12 first.

A discount point is a fee equal to 1% of the loan amount paid upfront to lower your interest rate.

Points are only worth buying if you keep the loan past the break-even month, which is the upfront cost divided by the monthly savings.

DTI is the share of your gross monthly income consumed by debt payments, including the proposed housing payment.

Many conventional programs target a back-end DTI at or below 43%–50%, with the housing-only front-end ratio often near 28%–36%. Affordability calculators work backwards from these limits.

Earnest money is a deposit made when your offer is accepted that shows you are serious about buying.

It is typically 1%–3% of the price, held in escrow, and credited toward your down payment or closing costs at settlement. Contract contingencies determine whether it is refundable.

An escrow account is a lender-held account that collects part of your property taxes and insurance each month and pays those bills when they come due.

Escrow makes your monthly payment change when tax or insurance costs change, even on a fixed-rate loan. Lenders also collect a few months of reserves at closing.

HOA fees are recurring dues paid to a homeowners or condo association for shared maintenance, amenities and reserves.

Lenders count HOA dues in your qualifying payment even though they never appear on your loan statement. Special assessments are extra one-off charges the dues do not cover.

Equity is your home's market value minus everything you owe against it.

Equity grows through principal payments and appreciation and shrinks when you borrow against the property. It is the amount you would keep after selling and repaying loans, before selling costs.

A homestead exemption reduces the taxable value of a primary residence, lowering the annual property tax bill.

Rules, amounts and application deadlines are set locally, and some states also cap how fast assessed value can rise for homesteaded owners.

The interest rate is the annual percentage a lender charges on your outstanding loan balance, excluding fees.

Calculators convert the annual rate to a monthly rate by dividing by 12. A rate quoted without points or fees is not the same as the APR you are legally disclosed.

LTV is the loan amount divided by the property value, expressed as a percentage.

A 20% down payment produces an 80% LTV, the threshold where PMI usually disappears and pricing improves. Refinance eligibility is also driven by LTV.

A millage rate is a property tax rate expressed in dollars of tax per $1,000 of taxable value; one mill equals 0.1%.

A 20-mill rate on a $250,000 taxable value equals $5,000 a year. Your total bill often combines county, city, school district and special-district millages.

Opportunity cost is the return your down payment and closing costs could have earned if invested instead of spent on a home.

Ignoring it makes buying look better than it is. Honest rent-versus-buy comparisons apply an assumed investment return to the cash a renter keeps invested.

PITI stands for principal, interest, taxes and insurance — the four parts of a typical monthly mortgage payment.

Lenders qualify you on PITI, not just principal and interest, and they add HOA dues and PMI where they apply. That is why a payment estimate that shows only P&I understates your real cost.

PMI is insurance that protects the lender, not you, and is usually required on conventional loans when your down payment is under 20%.

PMI typically runs roughly 0.3%–1.5% of the loan amount per year and can normally be cancelled once you reach about 20% equity. FHA loans use a separate mortgage insurance premium with different cancellation rules.

Principal is the amount you actually borrow, before any interest is added.

Your principal equals the purchase price minus your down payment, plus any financed fees. Every payment reduces it slightly, which is why interest charges shrink over time.

PSI is pounds per square inch of compressive strength, the standard rating for a concrete mix.

Residential slabs and walkways commonly specify 3,000–4,000 PSI; driveways and structural work often go higher. Strength affects mix price, not the volume you need.

Spread rate is how much surface one unit of material covers — for paint, usually 350–400 square feet per gallon per coat.

Porous, textured or heavily contrasting surfaces cut real coverage substantially and often need an extra coat or a primer.

Square footage is area measured in square feet: length in feet multiplied by width in feet.

Break irregular rooms into rectangles and add them. For paint, measure wall area (perimeter x ceiling height) rather than floor area, then subtract large openings.

Title insurance protects against ownership claims, liens or record errors that predate your purchase.

The lender's policy is nearly always required; the owner's policy is optional but is the only one that protects your equity. Both are usually one-time premiums paid at closing.

Underlayment is the cushioning or moisture-barrier layer installed between a subfloor and the finished flooring.

Some laminate and vinyl planks include attached padding; adding another layer can void a warranty. Price it per square foot alongside the flooring itself.

A waste factor is the extra percentage of material ordered to cover cuts, breakage, mistakes and future repairs.

Typical allowances are 5%–10% for straight-lay flooring, 15%–20% for diagonal or herringbone patterns, and 5%–10% for paint and concrete on uneven ground.