Here's a quick guide to help you better understand your mortgage.

ARM (Adjustable- Rate Mortgage) Traditional fixed rate mortgages have the same interest and monthly payment for the life of the loan. An ARM is typically fixed for a certain period and will change throughout the term of the loan.

DTI (Debt to Income) This ratio is the percentage of your income that goes towards paying monthly bills. The lower the better!

FHA Loan (Federal Housing Administration Loans) Established during the great depression, these loans made buying a home more accessible by providing mortgage help letting borrows qualify for a lower down payment, rather then the recommended 20%.

LTV (Loan to Value) Ratio calculated by dividing the loan amount by the purchase price. For Example: When you put down 20% your LTV is 80%

MIP (Mortgage Insurance Premium) Fee that is financed as part of the loan charged by FHA loans. This is a special program that allows first-time buyers to put down less than 20% on their home purchase.

PMI (Private Mortgage Insurance) Extra fee you pay when your down payment is less than 20% 

If you ever find yourself sounding out acronyms while trying to follow along with your lender just remember Asking will never be a stupid question, especially during something as important as the home buying process!