Mortgage Loan Programs

Fixed-rate mortgages have a constant interest rate, while ARMs start with a lower interest rate that periodically adjusts based on market conditions.

Lenders assess your credit score, income, employment history, debt-to-income ratio, and down payment.

Most conventional loans require a credit score of at least 620, while FHA loans may accept scores as low as 500 with a larger down payment.

The minimum down payment amount depend son the exact loan type. For instance, conventional loans require at least 3%, FHA loans require a minimum of 3.5%, and VA loans are available with no payment.

PMI is insurance that is needed on conventional loans with down payments less than 20%, protecting the lender if you default.

Closing costs are fees that are paid at the end of the mortgage process and are typically 2% to 5% of the loan amount. These costs cover things like appraisal, title, and legal fees.

Unlike interest rates, the APR includes interest plus fees and other costs, which gives borrowers a more accurate picture of the actual total cost of the loan.

Yes, most lenders allow you to lock your rate during the application process to protect against market fluctuations.

Escrow is an account where your lender holds funds for property taxes and homeowners insurance, paid monthly with your mortgage.

Yes, but check for prepayment penalties in your loan agreement.

Typically, you’ll need pay stubs, tax returns, bank statements, ID, and proof of assets.

An appraisal is a professional assessment of the property’s market value to ensure it aligns with the loan amount.

Refinancing involves replacing your current mortgage with a new one, often to lower your interest rate, change terms, or access equity.