Overview

Mortgage types differ in rate structure, qualification standards, down payment requirements, and insurance. Compare total cost, not just monthly payment.

Fixed‑Rate Mortgages

Stable interest rate and payment for the loan term. Common terms are 15 and 30 years. Ideal for predictable budgeting.

Adjustable‑Rate Mortgages (ARM)

Initial fixed period followed by periodic adjustments. Lower initial rates with future variability. Understand caps and indices.

FHA Loans

Flexible qualification and lower down payments. Mortgage insurance required. Useful for first‑time buyers with limited savings.

VA Loans

For eligible veterans and service members. Often no down payment and favorable terms. Review funding fees and benefits.

Jumbo Loans

For amounts above conforming limits. Stricter underwriting and larger down payments are common. Compare lenders carefully.

Down Payment & Closing Costs

Budget for down payment, appraisal, title, escrow, and reserves. Ask about credits and seller concessions where appropriate.

Preapproval & Underwriting

Strengthen offers with preapproval. Underwriting reviews income, assets, debt, and property condition to confirm loan terms.

Refinancing

Replace your loan to reduce rate or change term. Weigh closing costs against total savings and time you plan to keep the home.

Rate Factors

Credit score, loan‑to‑value, property type, points, and market rates affect pricing. Improve credit and compare lenders to optimize.

FAQs

Target total housing costs under 28–33% of gross income. Include taxes, insurance, HOA, and maintenance in your estimate.

Fixed offers stability; ARM offers lower initial costs but changes later. Match the loan to how long you expect to own.

Finance Your Home Smartly

Get lender comparisons and guidance aligned with your financial plan.