Glossary & FAQ

Your go-to resource for banking and mortgage terms, FAQs, and helpful definitions, all in one place.

Clear answers, brighter banking.

Money questions shouldn’t leave you in the dark. That’s why we built this page: to put all the big words, fine print, and common questions in one place. From simple banking basics to the ins and outs of home loans, our glossary and FAQs shine a light on what really matters, so that you can make decisions with confidence.

Glossary of Key Terms

Banking Terms

  • APY (Annual Percentage Yield): The total amount of interest you’ll earn on a deposit account in one year, including compounding.
  • ACH Transfer: A way to move money electronically between banks in the U.S. (used for direct deposit, bill pay, and transfers).
  • Certificate of Deposit (CD): A savings account that locks in your money for a set time at a fixed rate.
  • Overdraft Protection: A service that prevents declined transactions by linking to a backup account or line of credit.
  • Routing Number: A unique nine-digit code that identifies your bank for payments and transfers.
  • Wire Transfer: A fast, direct way to send money electronically, often for larger sums.


Mortgage & Home Loan Terms

  • Amortization: The process of paying off your loan over time through scheduled payments of principal and interest.
  • Appraisal: A professional estimate of a home’s value, used to confirm the loan amount.
  • Closing Costs: Fees and expenses you pay at the end of the home loan process (not part of the down payment).
  • DTI (Debt-to-Income Ratio): A measure lenders use to see how much of your income goes toward debt.
  • Equity: The difference between your home’s value and what you owe on your mortgage.
  • Escrow: An account where your lender holds money for property taxes and insurance.
  • Fixed-Rate Mortgage: A loan where the interest rate stays the same for the life of the loan.
  • HELOC (Home Equity Line of Credit): A revolving line of credit that uses your home’s equity as collateral.
  • Jumbo Loan: A mortgage larger than the standard conforming loan limit, often used for high-value properties.
  • Pre-Approval: A lender’s conditional agreement to loan you a certain amount based on your financial profile.


General Financial Terms

  • Compound Interest: Earning interest not just on your original balance, but also on the interest already earned.
  • Credit Score: A three-digit number that reflects your history of borrowing and repayment.
  • Liquidity: How easily you can access your money without losing value.
  • Principal: The original amount of money you borrow (for a loan) or deposit (for savings).
  • Refinance: Replacing an existing loan with a new one, usually to get a better rate or terms.

Frequently Asked Questions

  • Q: How do I open an account with Luminate Bank?

    You can apply online in minutes, or visit one of our branches. You’ll need a valid ID and basic personal information to get started.

  • Q: Is my money safe with Luminate Bank?

    Yes. All deposit accounts are FDIC-insured up to $250,000 per depositor, per account type.

  • Q: How do I avoid fees?

    Most of our accounts have no or low fees. You can often avoid fees by opting for eStatements, maintaining a minimum balance, or using direct deposit.

  • Q: Can I link my account to apps like Venmo or QuickBooks?

    Absolutely. Our digital banking tools are designed to integrate seamlessly with financial apps and services.

  • Q: How much do I need for a down payment?

    It depends on the loan type. Some loans require as little as 0–3% down, while others may ask for more.

  • Q: What’s the difference between pre-qualification and pre-approval?

    Pre-qualification is an initial estimate based on self-reported info. Pre-approval is a lender-verified approval with more weight when making an offer on a home.

  • Q: What loan options does Luminate Bank offer?

    We offer a range of loan options such as Conventional, FHA, VA, USDA, Jumbo, One-Time Close Construction loans, Renovation loans, Non-QM, Reverse Mortgages, and more!

  • Q: How long does it take to close on a home loan?

    Typicall,y 30–45 days, but it can vary depending on the loan type and your situation.

  • Q: What makes Luminate Bank different?

    We combine personalized service with modern digital tools, helping you illuminate your path toward financial confidence - whether that’s saving, borrowing, or building wealth.

  • Q: Do you only serve customers in certain states?

    No! While we have roots in specific communities, many of our banking and mortgage services are available nationwide.

  • Q: How can I contact Luminate Bank?

    You can call us, reach out to a loan officer, or connect online. Also, don't be shy to visit us in person at one of our brick-and-mortar locations!

Still have questions? Let's talk.

Your financial journey is unique, and sometimes the best answers don’t come from a glossary but from a real conversation. Our team is here to walk you through the details, explore your options, and help you feel confident every step of the way.

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