1 Month LIBOR Rate
LIBOR stands for London Inter Bank Offer Rate. It's the rate of interest at which banks offer to lend money to one another in the wholesale money markets in London. It is a standard financial index used in U.S. capital markets and can be found in the Wall Street Journal. In general, its changes have been smaller than changes in the prime rate.

1-year ARM
A 1-year ARM is an adjustable-rate mortgage (ARM) that has an initial interest rate for one year, and thereafter has an adjustment interval of one year. The adjustment is based on a comparison of interest caps and the indexed rate.

11th District Cost of Funds
A monthly cost-of-funds index (COFI) reflecting the weighted-average interest rate paid by 11th Federal Home Loan Bank District savings institutions for savings and checking accounts. The 11th district covers Arizona, California and Nevada. The index is published on the last day of the month and reflects the cost of funds for the prior month.

15-year fixed
A 15-year fixed mortgage has an interest rate that stays the same for the 15-year life of the loan.

15-year jumbo
A 15-year jumbo mortgage is a home loan that exceeds the limits set by Fannie Mae and Freddie Mac ($417,000 this year). Jumbo mortgages generally have a slightly higher interest rate than smaller (sometimes called "conventional" or "conforming") mortgages.

3/1 ARM
A 3/1 ARM is an adjustable-rate mortgage, or ARM, that has an initial interest rate that is fixed for the first three years, and adjusts each year thereafter. Each annual rate adjustment is based on (or "indexed to") another rate -- often the yield on a Treasury note. The rate can only change within limits(caps) by a specified amount each year, and a specified amount over the life of the loan.

30-year fixed
A 30-year fixed mortgage is a loan that has an interest rate that stays the same for the 30-year term of the loan.

30-year jumbo mortgage
A 30-year jumbo mortgage is a home loan that exceeds the limits set by Fannie Mae and Freddie Mac ($417,000 this year). A jumbo mortgage will usually carry a slightly higher interest rate than a conventional mortgage.

401(k)/403(b)
An employer-sponsored investment plan that allows individuals to set aside tax-deferred income for retirement or emergency purposes. 401(k) plans are provided by employers that are private corporations. 403(b) plans are provided by employers that are not for profit organizations.

401(k)/403(b) loan
Some administrators of 401(k)/403(b) plans allow for loans against the monies you have accumulated in these plans. Loans against 401K plans are an acceptable source of down payment for most types of loans.

5/1 ARM
A 5/1 ARM is an adjustable-rate mortgage (ARM) that has an initial interest rate for five years, and thereafter has an adjustment interval of one year. The adjustment is based on (or 'indexed to') another rate -- often the yield on a Treasury note.

7/1 ARM
A 7/1 ARM is an adjustable-rate mortgage (ARM) that has an initial interest rate for seven years, and thereafter has an adjustment interval of one year. The adjustment is based on (or 'indexed to') another rate -- often the yield on a Treasury note.

80-10-10 loan (also 80-15-5, 80-20, etc.)
A combination of an 80 percent loan-to-value first mortgage, a 10 percent home equity loan and a 10 percent down payment. The loans can be used to eliminate the need for private mortgage insurance. Alternatively, a buyer of an expensive home can use one to eliminate the need for a jumbo mortgage by reducing the first mortgage to the conventional limit.