A mortgage is a loan used to purchase a home or property. The home acts as collateral—if you don’t pay, the lender can take it back through foreclosure.
Fixed-Rate Mortgage
Interest rate stays the same over the life of the loan.
Predictable payments.
Adjustable-Rate Mortgage (ARM)
Interest rate changes over time.
Lower initial rate, but riskier in the long run.
FHA Loans (Backed by the Federal Housing Administration)
Lower credit score requirements.
Great for first-time buyers.
VA Loans (for Veterans)
No down payment required.
Backed by the Department of Veterans Affairs.
USDA Loans (for rural areas)
Zero down payment.
Income limits apply.
Down Payment: Initial payment toward the home, often 3%–20%.
Principal: The original loan amount.
Interest: What you pay the lender to borrow money.
Escrow: A separate account for taxes & insurance, often paid monthly.
PMI (Private Mortgage Insurance): Required if your down payment is under 20%.
30-Year Mortgage: Lower monthly payments, more interest paid over time.
15-Year Mortgage: Higher monthly payments, less interest overall.
Credit Score
Debt-to-Income Ratio
Employment & Income History
Assets & Savings
Get Pre-Approved: Know your budget before house hunting.
Shop Around: Compare lenders for the best rates and terms.
Watch Interest Rates: Even a small change can mean big savings or costs.
