Mortgage Planning
Mortgage Affordability Stress Tester Glossary
This glossary breaks down DTI, LTV, PMI/LMI, closing costs, HOA, maintenance, default probability, percentiles, and scenarios with short definitions and mini examples.
Published: January 1, 2026 · Updated: January 1, 2026 · By FinToolSuite Editorial
Open the stress tester
See these terms in action by running a scenario and checking outputs.
Disclaimer
- Educational only. No guarantees.
- Definitions are simplified and illustrative.
Glossary A–Z
Closing costs: Upfront costs at closing, often modeled as a percent (e.g., 2% = $8,000 on $400k).
Default probability: Model-based frequency of stressed paths crossing thresholds. Not a prediction.
Debt to income (DTI): Monthly debts and housing costs divided by gross income.
HOA: Homeowners association fee added to monthly costs.
LTV (loan to value): Loan amount divided by property value. Higher LTV can trigger PMI/LMI.
Maintenance allowance: Monthly buffer for repairs (e.g., $150) to smooth irregular costs.
Percentile: Point on the distribution (e.g., 90th percentile shows tougher tail).
PMI/LMI: Mortgage insurance tied to higher LTV; entered as percent with threshold.
Scenario: Saved set of inputs and outputs you can label and compare.
Safe loan: Model-suggested loan amount balancing stress outcomes.
FAQs
Are these definitions tool-specific?
They match how the mortgage affordability stress tester uses the terms.
Where do I see examples?
Run the tool and check outputs or read the related posts linked above.
Is this advice?
No. It is educational, not a guarantee or approval.
Where is privacy info?
See Privacy Policy.
See terms in action
Open the mortgage affordability stress tester, run a scenario, and match outputs to this glossary.