Your annual gross income is the total amount you earn each year before any deductions like taxes. On the other hand, your annual net income is what remains after taxes and other deductions are taken out.

Monthly debts include payments you make regularly to repay borrowed money. Examples include car loans, credit card payments, student loans, or obligations like alimony and child support.

Property taxes are calculated based on the value of your home and are typically paid annually. These taxes fund essential public services in your community, such as road maintenance, schools, and emergency services.

Home insurance protects your home against risks like natural disasters, fire, or theft. The annual premium is what you pay each year to ensure financial coverage for repairs or replacement of your home and belongings if unexpected events occur.

A down payment is the upfront portion of the home's purchase price that you pay out-of-pocket. This is usually expressed as a percentage of the total price. The remainder is financed through a loan, which you'll repay over time.

An interest rate, expressed as a percentage, is the cost of borrowing money. This rate determines the extra amount you’ll pay in addition to the loan principal. Mortgage loans typically have either a fixed-rate (a consistent rate for the loan's duration) or an adjustable-rate (which changes periodically).

The loan term is the agreed length of time you’ll take to repay the loan. It’s typically expressed in years or months, with common mortgage terms being 15, 20, or 30 years.

The principal refers to the original amount of money borrowed or invested. The interest is the additional amount a borrower agrees to pay for borrowing the money.