- Interest rate
- The note rate on the loan. It is the rate used to calculate your principal and interest payment. A lower note rate usually means paying more in points or costs up front.
- APR
- A yearly cost-of-borrowing figure for the exact quote shown. APR reflects applicable borrower-paid finance charges and pricing credits for this quote. Depending on the option, the APR shown is either the APR returned with that quote or our own audited calculation, used where verified borrower-paid finance charges outside the quoted price apply. Other lender and third-party costs may apply and may not be included in the APR. On these business-purpose investor loans it reflects the note rate plus any borrower-paid discount points, and pricing credits only offset borrower-paid finance charges, which is why an option priced at or near par, or one with a lender credit, can show an APR equal to its rate. It is useful for comparing options, but it is not the rate used to calculate your payment.
- Points / credit
- Pricing expressed as a percentage of the loan amount: 1 point = 1% of the loan amount. Borrower points are a cost you pay at closing to get a lower rate. A lender credit is money the lender puts toward your closing costs in exchange for a higher rate. We show them separately and never net them into one number.
- Par pricing
- Par means the rate is priced with no discount points charged to you and no lender credit given back. Anything above par returns a lender credit toward your closing costs; anything below par means you are paying points to buy the rate down.
- Lender credit
- Money the lender applies toward your closing costs in exchange for accepting a slightly higher rate. It is not cash to you and it does not reduce your loan amount — it offsets costs due at closing.
- Primary lender fee
- The lender's own main origination or underwriting charge for this option, taken from that lender's published fee schedule and shown under their own fee name. Where the lender supports it, this charge is already reflected in the pricing returned for your scenario, so it is not an extra amount on top of the points or credit. Other lender and closing costs are listed separately in the cost breakdown.
- Estimated fees & closing costs
- We only show lender charges the pricing engine actually returned for that program. Third-party settlement costs — title, escrow, appraisal, recording, attorney, prepaid taxes, insurance and interest — are quoted separately on your Loan Estimate and are never estimated here.
- Other estimated lender costs
- Additional lender charges that may apply to your file, such as entity or LLC review, document preparation, funding, tax service or flood certification. They come from the lender's published schedule, are estimates only, are not added into the quoted pricing, and may not be included in the APR shown. Title, escrow, appraisal, recording, taxes and insurance are separate third-party costs.
- Estimated P&I
- Estimated principal and interest only. It excludes property taxes, insurance, HOA dues, flood insurance, and any escrow or third-party closing costs, so your real monthly outlay will be higher.
- Lock period
- The pricing period this quote is based on (for example 30 days). Displaying it is not a rate lock. A lock requires a submitted application, credit review, and property documentation.
- DSCR
- Debt Service Coverage Ratio — the property's gross rental income divided by its qualifying monthly housing expense (principal, interest, taxes, insurance, HOA and any applicable assessments). A 1.20 DSCR means rent covers 120% of that obligation.
- LTV
- Loan-to-value — the loan amount divided by the property value. On a purchase we use the lower of purchase price or appraised value; on a refinance we use the appraised value.
- Credit score
- The qualifying mid credit score used for pricing. DSCR pricing moves in credit tiers, so a small score change can move the rate more than you expect.
- Prepayment penalty
- Many DSCR programs offer a prepayment structure (for example a 3-year or 5-year step-down). Choosing a shorter prepay period, or none at all, usually raises the rate or cost, and some programs are only eligible with a prepay in place. State rules can also limit the options.
- Borrower status
- Citizenship and residency materially change which DSCR programs a borrower is eligible for and how they price. Foreign national scenarios draw from a smaller set of investors, typically with lower maximum leverage and higher pricing.
- ITIN
- An Individual Taxpayer Identification Number. ITIN qualification is a separate program feature from foreign national status — an ITIN borrower is not automatically a foreign national, and a foreign national does not automatically have an ITIN.
- Entity vesting
- Whether title is held in an LLC or other entity rather than personally. These are business-purpose loans, and most investors prefer or require entity vesting.
- Short-term rental
- Property rented nightly or weekly (Airbnb / VRBO). Fewer investors allow it, income documentation differs, and pricing is usually higher than for a standard 12-month lease.
- Interest-only
- An interest-only period lowers the monthly payment during that period, which can improve DSCR, but no principal is paid down and the payment steps up when the interest-only period ends.
- Lender
- Wholesale investor identities are not published. Each option is labeled anonymously (Lender A, Lender B, and so on). Your loan officer discloses the actual lender on your written quote.
