If you’re buying a home for the first time, you might be overwhelmed by the lingo and acronyms that sound like a foreign language. Check out our glossary of some of the common real estate and mortgage terms:

Adjustable-rate mortgage (ARM): A mortgage in which the interest rate adjusts periodically to reflect changing interest rates.

Appraisal: The amount of money a property is worth as determined by a professional appraiser.

Appreciation: The increase in value of a property over time (a decrease in value is known as “depreciation”).

Assessed value: The value of the house used to determine property taxes.

Closing: Usually refers to signing the mortgage papers and transferring the property.

Closing costs: The packages of expenses paid by the buyer and seller upon closing, such as mortgage fees, transfer taxes and brokerage commission.

Down payment: The amount of purchase price that the buyer pays upfront with cash.

Escrow: Depositing a down payment with a third party to hold until closing.

Fair market value: The highest price a buyer would pay and the lowest price a seller would accept for a property.

Fixed-rate mortgage: A mortgage in which the interest rate remains the same during the entire term of the loan.

Mortgage: A loan the buyer takes out to buy a house, with interest.

Pre-approval: When a lender reviews an applicant’s credit history and income and provides a letter indicating how much money the applicant is eligible to borrow.

Predatory lending: Abusive lending practices, such as making mortgage loans to people who can’t afford to repay them.

Private mortgage insurance (PMI): Mortgage insurance that protects a lender if the buyer defaults on a loan; usually required by a lender if the down payment is less than 20 percent of the sale price.