Guides, explainers and reference material for homebuyers, homeowners and mortgage professionals.
In-depth guides covering every stage of the mortgage process.
A complete walkthrough of the homebuying process — from getting pre-approved to closing day. Covers loan types, down payments, escrow and what to expect at every step.
When does refinancing make sense? Learn how rate-and-term and cash-out refis work, how to calculate your break-even point and what lenders look for.
What moves mortgage rates, how they differ from the Fed funds rate, and how your credit score, loan size and down payment affect the rate you're offered.
Conventional, FHA, VA, USDA, jumbo — what each loan type requires, who qualifies and when each makes more financial sense than the alternatives.
From application to funding: a detailed breakdown of underwriting, the appraisal, title search, loan commitment and the closing disclosure timeline.
What private mortgage insurance costs, when you can cancel it, and how escrow accounts collect and pay property taxes and homeowner's insurance on your behalf.
Lenders use your credit score to set your rate. A 740+ score typically gets the best conventional rates; FHA loans accept scores as low as 580.
Most lenders cap your total monthly debt at 43% of gross income (DTI). Include the mortgage payment, taxes, insurance and any existing debts.
Beyond the down payment, plan for 2–5% of the loan in closing costs. Some state and local programs offer down payment assistance for first-time buyers.
A pre-approval letter shows sellers you're a serious buyer and locks in your rate for 60–90 days. Shop at least three lenders to compare offers.
Plain-English definitions for the terms you'll encounter during the mortgage process.
The process of paying down a loan through scheduled payments that cover both principal and interest, structured so the loan is fully paid by a set end date.
Annual Percentage Rate — the true yearly cost of borrowing, including the interest rate plus fees, expressed as a percentage. Always compare APRs, not just rates.
Debt-to-Income ratio — your total monthly debt payments divided by gross monthly income. Most lenders require a DTI at or below 43% to qualify for a conventional loan.
A neutral third-party account that holds funds during a transaction, or an account your servicer uses to collect and pay property taxes and homeowner's insurance.
Loan-to-Value ratio — the loan amount divided by the home's appraised value. A lower LTV signals less risk to lenders and generally earns a better interest rate.
Private Mortgage Insurance — required on conventional loans when your down payment is less than 20%. Protects the lender, not you. Typically 0.5–1.5% of the loan per year.
Discount points paid upfront at closing to reduce the mortgage rate. One point equals 1% of the loan amount and typically lowers the rate by about 0.25%.
The lender's process of verifying your income, assets, credit and the property to assess risk and determine whether to approve your loan and at what terms.