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If you’re buying a home in this tight lending environment, you can expect it to be a more difficult process than years ago. Also, a first-time home buyer can expect to hear a lot of unfamiliar terms. Mortgage experts Ross Weinstein of Exclusive Capital and Maryla Ciechanowicz of GuardHill Financial have offered to explain some common terms to NY1.

For example, when shopping for a mortgage, you may hear the term "points."

"A 'point' is equal to 1 percent of the loan amount, and when you pay points, in theory you get a lower interest rate. So you can pay a fee up front and get a lower rate," says Weinstein.

There are also points to cover fees involved with processing the transaction.

You may find a bank that offers a mortgage with a "float-down" option.

"'Float down' is a fantastic option. It means when you lock your rate, that particular lender is giving you a chance to lower your rate to market rate if rates go down," says Ciechanowicz.

Also, when figuring out your rate, your broker may use the terms "margin" and "cap."

"'Margin' and 'cap' come into play with adjustable loans. They are tied to different indexes. LIBOR is one of the indexes, Treasury is another index. And your margin is how much above the index you are going to pay," says Weinstein.

The "cap" is the most the rate can increase in one year.

Finally, in addition to other insurance, many banks are now requiring you get “walls in” insurance as well.

"It's additional insurance that banks now require, especially now for condos, that should insure what’s in the apartment for about 20 percent of the appraised value," says Ciechanowicz.

This includes home improvement and things like custom built-ins.