Penalties are fees a lender charges when a borrower breaks the terms of their mortgage agreement, such as paying off the mortgage early, refinancing, or switching lenders before the term ends. These fees are typically higher for fixed-rate mortgages than variable-rate ones.

Flexible debt ratios refer to a lending approach in which lenders are willing to accept higher levels of debt relative to income than traditional lenders. This means they are more lenient in their calculations of how much of your income can go towards debt payments, including your mortgage.

A rental program is a mortgage product designed to assist individuals in financing properties intended for rental income. These programs help buyers leverage the projected income from a rental property to meet mortgage qualification requirements.

A bank statement program allows self-employed individuals or those with non-traditional income to qualify for a mortgage based on bank statements instead of standard income verification.

Alternative rates are interest rates offered by alternative lenders that cater to clients who may not meet the strict criteria of traditional banks. These lenders often work with borrowers with non-traditional income sources or unique financial situations.

A graduate program is a mortgage solution designed to help borrowers transition from alternative lending to more traditional lending options. This program typically helps clients move from higher interest rates with an alternative lender to lower rates offered by traditional lenders.

Insurance that protects the lender in case the borrower defaults on the mortgage.

A lender's fee covers the costs a lender incurs in processing your mortgage application. These fees are typically paid upfront, either at the time of application or at closing.

The process of gradually paying off a debt over time through scheduled, periodic payments. These payments are typically made in equal amounts and consist of both principal (the amount borrowed) and interest.

HELOC (Home Equity Line of Credit) is a type of loan that allows homeowners to borrow against the equity they’ve built in their home.

In lending and mortgages, a stress test is a financial assessment used by lenders to ensure that borrowers can still afford their mortgage payments even if interest rates rise significantly.