What is a mortgage?
A mortgage is a secured loan where the home acts as collateral. You repay principal and interest in installments over a fixed period, while taxes and insurance may be included in escrow.
Home Loan Types
Conventional
APR 5.85%-7.4%Down 5%-20%Term 10-30 yr
FHA
APR 6.10%-7.8%Down 3.5%Term 15-30 yr
VA
APR 5.95%-7.1%Down 0%Term 15-30 yr
USDA
APR 6.00%-7.3%Down 0%Term 30 yr
ARM
APR 5.41%-7.0%Down 5%-20%5/1, 7/1
Jumbo
APR 6.25%-8.1%Down 10%-25%Term 15-30 yr
Fixed vs ARM
| Feature | Fixed | ARM |
|---|---|---|
| Rate Stability | Constant rate | Adjustable after intro period |
| Initial Payment | Higher | Usually lower |
| Best For | Long-term owners | Short-to-mid horizon |
| Risk Profile | Predictable | Rate reset risk |
Closing Cost Table
| Item | Typical Range |
|---|---|
| Appraisal | $450-$900 |
| Credit Report | $35-$75 |
| Origination | 0%-1% of loan |
| Title Insurance | $500-$1,500 |
| Escrow/Settlement | $300-$900 |
| Recording Fees | $50-$250 |
Eligibility Snapshot
Credit Score
620+ recommended
620+ recommended
DTI Ratio
Typically below 43%
Typically below 43%
Employment
2-year stable history
2-year stable history
Assets
Reserves for 2-6 months
Reserves for 2-6 months
Application Process
1. Pre-qualification: Share income and debt details for an estimate.
2. Document Upload: Submit statements, W2s, and tax returns.
3. Underwriting: Verification and risk review.
4. Property Appraisal: Independent valuation of home.
5. Final Approval: Conditions cleared and terms finalized.
6. Closing & Funding: Sign documents and fund your purchase.