Your Questions, Answered

Mortgage Rates

  • Today's mortgage rates change throughout the day based on market conditions, your credit profile, loan type, down payment, and other qualifying factors. The fastest way to see the mortgage rates you may qualify for is to use our secure Rate Finder. In just minutes, you can compare personalized mortgage rate quotes with a soft credit check—with no impact on your credit FICO score.

  • Your mortgage interest rate is based on a combination of market conditions and your unique financial profile. Factors such as your credit FICO score and mortgage payment history, loan amount, down payment, loan type (including FHA loans, VA loans, USDA loans, Conventional loans, and Jumbo loans / Non Conventional, debt-to-income ratio, and the property's location can all affect the mortgage rates you qualify for. Because every borrower is different, the best way to find your personalized mortgage rate quote is with our secure Rate Finder tool, which uses a soft credit check with no impact on your credit score.

  • Key factors include:

    • Credit Score: Your credit score reflects your history of managing credit. higher scores—typically 760 or above—may qualify for the most competitive mortgage rates, but many borrowers with lower scores still qualify for excellent home loan options.

    • Down Payment: The amount you put down affects your loan-to-value (LTV) ratio. A larger down payment generally reduces lender risk and may result in a lower interest rate. Many programs also offer low down payment options for qualified borrowers.

    • Debt-to-Income (DTI) Ratio: Your DTI compares your monthly debt payments to your gross monthly income. A lower ratio shows lenders that you can comfortably afford a new mortgage payment, which may improve your loan terms.

    Your lender may also consider factors such as your income, employment history, available assets, and the type of loan you're applying for, including an FHA loan, VA loan, USDA loan, Conventional loan, or Jumbo loan / Non Conforming.

    • Yes. A mortgage rate lock allows you to secure your interest rate for a specific period—typically 15, 30, 45, or 60 days—helping protect you if mortgage rates increase before your loan closes.

    • In most cases, you can lock your rate after you've completed your loan application and have an accepted purchase agreement or have reached the appropriate stage of your refinance. Your loan officer can help you determine the best time to lock based on your loan and expected closing date.

    • It's important to choose a lock period that covers your anticipated closing timeline. If your loan doesn't close before the rate lock expires, you may need to pay an extension fee or accept the current mortgage rate.

    • If mortgage rates decrease after you've locked, some lenders offer a float-down option, which may allow you to take advantage of the lower rate. Float-down programs vary by lender and may include additional fees or eligibility requirements, so be sure to ask what options are available before locking your rate.

    • Most mortgage rate locks are available for 15, 30, 45, or 60 days, although some lenders offer shorter or longer lock periods depending on your loan program and closing timeline.

    • When choosing a rate lock, it's important to select a timeframe that comfortably covers your expected closing date. If your loan doesn't close before the lock expires, you may need to pay an extension fee or accept the mortgage rates available at that time.

    • Your loan officer can help you choose the right lock period based on your transaction and current market conditions, helping you protect the mortgage rate you've secured until closing.

    • Lock your rate now if:

      • Your closing date is within 30 days: Trying to time the market with a fast-approaching closing date brings significant risk of a rate hike.

      • You are at the top of your budget: If a higher monthly payment would strain your finances, locking ensures payment certainty.

      • Rates are volatile or trending up: Secure a rate you are comfortable with.

    • Wait to lock if:

      • You are more than 45 to 60 days from closing: Long-term rate locks often come with higher fees or upfront costs. 

      • Rates are trending downward: If you have flexibility and expect rates to fall, waiting allows you to capture those savings.

      • Consider a Float-Down Option: If you want the best of both worlds, ask your lender if they offer a "float-down" provision. This allows you to lock in a rate to protect against increases, but still lets you secure a lower rate if the market drops significantly before you close.

  • The Interest Rate is the cost of borrowing the money. The APR (Annual Percentage Rate) includes the interest rate plus certain loan fees, giving you a more complete picture of the total cost of the loan.

    Interest Rate

    • The cost of borrowing the loan amount.

    • Determines your monthly principal and interest payment.

    • Does not include most lender fees or closing costs.

    APR (Annual Percentage Rate)

    • Reflects the overall annual cost of the loan.

    • Includes the interest rate plus certain fees, such as origination charges and other lender costs.

    • Helps you compare different loan offers more accurately.

    Example:
    If one loan has a 6.25% interest rate with high fees and another has a 6.375% interest rate with low fees, the loan with the lower interest rate isn't always the less expensive option. Comparing the APR helps you understand the total cost of each loan.

    Tip: When comparing mortgage offers, look at both the Interest Rate and the APR to make a more informed decision.

  • No. Advertised mortgage rates are based on ideal borrower qualifications and are not guaranteed. The mortgage rate you receive depends on your financial profile, loan details, and current market conditions.

    Your personalized mortgage rate may be influenced by factors such as:

    Many advertised rates also assume you'll pay discount points at closing to reduce the interest rate, which increases your upfront costs.

    The best way to know what rate you qualify for is to compare personalized mortgage quotes based on your financial information. Looking at multiple loan offers allows you to compare interest rates, APRs, fees, and loan terms to find the option that best fits your needs.

    Ready to see your personalized rate? Use our Rate Finder and Soft Credit Check to compare mortgage options without affecting your credit score.

  • To qualify for a lower mortgage rate, focus on improving the factors lenders use to evaluate your loan. Even small improvements can make a difference.

    Here are some of the best ways to lower your rate:

    • Decrease the amount you owe on your credit card to increase your utilization rate.

    • Improve your credit score before applying.

    • Make a larger down payment when purchasing a home.

    • Lower your debt-to-income (DTI) ratio by paying down debt.

    • Choose a loan program that best fits your financial situation.

    • Consider paying discount points if you plan to keep the loan long enough to benefit from the lower rate.

    The best mortgage rate isn't always the one with the lowest interest rate. Compare the APR, lender fees, and closing costs to understand the total cost of each loan.

    Want to know what rate you may qualify for? Start with our Rate Finder and Soft Credit Check to receive personalized mortgage options in just a few minutes.

Getting a Mortgage

Monthly Payments

  • Your monthly mortgage payment is based on several factors, including your loan amount, interest rate, loan term, and down payment. In addition to your principal and interest payment, many homeowners also pay property taxes, homeowners insurance, and, in some cases, private mortgage insurance (PMI) or homeowners association (HOA) dues.

    Your monthly payment may include:

    • Principal: The amount you repay toward your loan balance.

    • Interest: The cost of borrowing money from the lender.

    • Property Taxes: Taxes assessed by your local government.

    • Homeowners Insurance: Insurance that protects your home and is often required by lenders.

    • Private Mortgage Insurance (PMI): Usually required for conventional loans with less than a 20% down payment.

    • HOA Fees: Monthly dues if your home is part of a homeowners association.

    Your monthly payment will also vary based on:

    • Home purchase price

    • Down payment

    • Interest rate

    • Loan term (typically 15 or 30 years)

    Want an estimate? Use our Mortgage Payment Calculator to estimate your monthly payment based on your home price, down payment, interest rate, taxes, insurance, and other costs.

    → Calculate My Mortgage Payment

  • Most monthly mortgage payments include four main components, commonly referred to as PITI:

    • Principal: The portion of your payment that reduces your loan balance.

    • Interest: The cost of borrowing money from your lender.

    • Property Taxes: Local taxes assessed on your home's value, often collected monthly through an escrow account.

    • Homeowners Insurance: Insurance that protects your home from covered losses and is typically included in your monthly payment.

    Additional costs that may apply

    Depending on your loan and property, your monthly payment may also include:

    Because every loan is different, your total monthly payment can vary based on your loan amount, interest rate, taxes, insurance, and other housing costs.

    Want to estimate your monthly payment? Use our Mortgage Payment Calculator to see how principal, interest, taxes, insurance, PMI, and HOA fees affect your estimated payment.

    → Estimate My Monthly Mortgage Payment

  • A monthly mortgage payment typically includes four main components, commonly known as PITI: Principal, Interest, Property Taxes, and Homeowners Insurance. Depending on your loan and property, additional costs may also apply.

    The Four Main Parts (PITI)

    • Principal: The portion of your payment that reduces your loan balance.

    • Interest: The cost of borrowing money from your lender.

    • Property Taxes: Taxes assessed by your local government, often collected monthly through an escrow account.

    • Homeowners Insurance: Insurance that protects your home against covered losses and is commonly included in your monthly payment through escrow.

    Additional Costs That May Apply

    Your total monthly payment will depend on factors such as your loan amount, interest rate, property taxes, insurance premiums, and whether PMI or HOA fees apply.

    Want to see what your monthly payment could be? Use our Mortgage Payment Calculator to estimate your payment based on your home price, down payment, interest rate, taxes, insurance, and other housing costs.

    → Calculate My Mortgage Payment

  • Usually, Yes. Most mortgage payments include property taxes through an escrow account, where your lender collects a portion of your annual property tax bill each month and pays it on your behalf when it's due.

    How property taxes are paid

    • Escrow Account: Your lender estimates your annual property taxes, divides the amount into 12 monthly payments, and includes it with your mortgage payment.

    • PITI Payment: When property taxes and homeowners insurance are included, your monthly payment is commonly referred to as PITI—Principal, Interest, Taxes, and Insurance.

    • Paying Taxes Yourself: Some homeowners, often those with larger down payments or sufficient home equity, may choose or qualify to pay their property taxes directly instead of using an escrow account.

    How can I tell if my taxes are included?

    You can check by:

    • Reviewing your monthly mortgage statement for an escrow section.

    • Looking at your Loan Estimate or Closing Disclosure.

    • Contacting your loan servicer for details about your escrow account.

    Want to estimate your total monthly payment? Our Mortgage Payment Calculator includes principal, interest, property taxes, homeowners insurance, and PMI to give you a more complete estimate.

    → Calculate My Monthly Mortgage Payment

  • Usually, Yes. While homeowners insurance is not part of your mortgage loan, it is often included in your monthly mortgage payment through an escrow account. Your lender collects a portion of your annual insurance premium each month and pays your insurance company when it's due.

    How homeowners insurance is paid

    • Escrow Account: Your lender divides your annual homeowners insurance premium into 12 monthly payments and includes it with your mortgage payment.

    • Direct Payment: Some homeowners, typically those who qualify to waive escrow, pay their insurance company directly instead of having it included in their mortgage payment.

    • Lender Requirements: Many lenders require an escrow account for borrowers with a smaller down payment or certain government-backed loans, such as FHA or USDA loans.

    Homeowners insurance vs. mortgage insurance

    It's important to understand the difference:

    Although both may be included in your monthly mortgage payment, they serve different purposes.

    Want to estimate your total monthly payment? Use our Mortgage Payment Calculator to see how homeowners insurance, property taxes, PMI, and other housing costs affect your monthly payment.

    → Calculate My Monthly Mortgage Payment

  • Private Mortgage Insurance (PMI) is insurance that protects the lender if you stop making your mortgage payments. PMI is typically required on conventional loans when your down payment is less than 20% of the home's purchase price.

    Key facts about PMI

    • Who pays for it? The borrower.

    • Who does it protect? The lender, not the homeowner.

    • When is it required? Usually when you put less than 20% down on a conventional loan.

    • How much does it cost? PMI typically costs 0.2% to 2% of the original loan amount per year, depending on factors such as your credit score, down payment, and loan type.

    Although PMI increases your monthly payment, it allows many buyers to purchase a home sooner without waiting to save a 20% down payment.

    Want to estimate your monthly payment with PMI? Use our Mortgage Payment Calculator to see how PMI affects your estimated payment.

    → Calculate My Mortgage Payment

  • For most conventional loans, Private Mortgage Insurance (PMI) can be removed once you've built enough equity in your home.

    Ways PMI can be removed

    • Request cancellation at 80% loan-to-value (LTV): You may ask your lender to remove PMI when your mortgage balance reaches 80% of your home's original value, provided you're current on your payments and meet your lender's requirements.

    • Automatic cancellation at 78% LTV: Federal law generally requires lenders to automatically cancel PMI when your loan balance reaches 78% of the home's original value, as long as your payments are current.

    • Midpoint of the loan term: If PMI hasn't already been removed, it generally ends when you reach the midpoint of your loan's amortization schedule, provided your loan is current.

    Can PMI be removed sooner?

    In some cases, yes. You may qualify to remove PMI earlier if:

    • Your home's value has increased significantly.

    • You've made substantial improvements that increased its value.

    • You've made additional principal payments and reached the required equity sooner.

    • You refinance into a new loan with 20% or more equity.

    Every lender has specific guidelines, so contact your loan servicer to determine your eligibility for PMI removal.

    Wondering whether PMI applies to your situation? Use our Rate Finder to explore loan options and estimated monthly payments based on your down payment and credit profile.

    → Find My Mortgage Rate

  • Your monthly mortgage payment depends on several factors, including your home price, down payment, loan amount, interest rate, and loan term. Your payment may also include property taxes, homeowners insurance, private mortgage insurance (PMI), and, if applicable, HOA fees.

    Because every borrower's situation is different, the easiest way to estimate your payment is with a mortgage calculator.

    Use our Mortgage Payment Calculator to estimate your monthly payment, adjust your down payment, compare loan terms, and see how taxes, insurance, and PMI affect your total monthly cost.

    → Calculate My Monthly Mortgage Payment

Loan Types

  • A Conventional loan is a mortgage offered by a private lender that is not insured or guaranteed by the federal government. Conventional loans are one of the most popular home financing options and can be used to buy a primary residence, second home, or investment property.

    How conventional loans work

    Common qualification requirements

    Benefits of a conventional loan

    • Low down payment options are available for qualified buyers.

    • Private Mortgage Insurance (PMI) is typically required when your down payment is less than 20%, but it can usually be removed once you've built enough equity.

    • Available for primary residences, second homes, and investment properties.

    • Offers flexible loan terms and competitive interest rates for qualified borrowers.

    Wondering if a conventional loan is right for you? Use our Rate Finder and Soft Credit Check to compare loan options and see what you may qualify for—without affecting your credit score.

    → Find My Mortgage Rate

  • An FHA loan is a mortgage insured by the Federal Housing Administration (FHA) and offered by approved private lenders. FHA loans are designed to make homeownership more accessible by allowing lower down payments and more flexible credit requirements than many conventional loans.

    FHA loan requirements

    • Credit Score: You may qualify with a credit score as low as 580 with a 3.5% down payment, or 500–579 with at least 10% down.

    • Debt-to-Income (DTI) Ratio: Most borrowers qualify with a DTI of 43% or less, although higher ratios may be approved in some cases.

    • Primary Residence: FHA loans must be used to purchase or refinance your primary residence.

    FHA mortgage insurance

    FHA loans require Mortgage Insurance Premiums (MIP), which include:

    • Upfront MIP:1.75% of the base loan amount, which can usually be financed into the loan.

    • Annual MIP: Paid monthly as part of your mortgage payment. The amount varies based on your loan amount, loan term, and down payment.

    • How long does MIP last?

      • If your down payment is less than 10%, MIP generally remains for the life of the loan.

      • If your down payment is 10% or more, MIP is typically required for 11 years.

    Property requirements

    To qualify for an FHA loan, the home must meet FHA minimum property standards for safety, security, and structural soundness. Eligible property types include:

    • Single-family homes

    • Multi-unit properties (up to four units)

    • FHA-approved condominiums

    • Manufactured homes on permanent foundations

    FHA loans are a popular option for first-time homebuyers and borrowers who may not qualify for a conventional loan due to limited savings or lower credit scores.

    Not sure if an FHA loan is right for you? Use our Rate Finder and Soft Credit Check to compare FHA, Conventional, VA, and USDA loan options without affecting your credit score.

    → Find My Mortgage Rate

  • A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs (VA) and offered by approved private lenders. VA loans help eligible veterans, active-duty service members, National Guard members, Reservists, and certain surviving spouses purchase or refinance a home with flexible qualification requirements and valuable benefits.

    Benefits of a VA loan

    • No Down Payment: Eligible borrowers can finance up to 100% of the home's purchase price.

    • No Private Mortgage Insurance (PMI): VA loans do not require monthly PMI, helping reduce your monthly payment.

    • Competitive Interest Rates: VA loans often offer lower interest rates than many conventional mortgages.

    • Limited Closing Costs: The VA limits certain fees that lenders can charge eligible borrowers.

    • Flexible Credit Requirements: Many lenders offer more flexible qualification standards than conventional loan programs.

    Who is eligible?

    VA loans are available to many:

    • Veterans

    • Active-duty service members

    • Eligible National Guard and Reserve members

    • Certain eligible surviving spouses

    Most borrowers must also obtain a Certificate of Eligibility (COE) to verify they meet the VA's service requirements.

    Property requirements

    VA loans are intended for primary residences and cannot generally be used to purchase vacation homes or investment properties.

    One-time VA funding fees may apply, although some eligible veterans are exempt based on factors such as service-connected disabilities or other qualifying circumstances.

    Not sure if you're eligible for a VA loan? Use our Rate Finder and Soft Credit Check to compare VA, FHA, Conventional, and USDA loan options without affecting your credit score.

    → Find My Mortgage Rate

  • A USDA loan is a mortgage backed by the U.S. Department of Agriculture (USDA) that helps eligible low- to moderate-income borrowers buy a home in qualified rural and suburban areas. USDA loans offer 100% financing, making them an attractive option for buyers who qualify.

    Benefits of a USDA loan

    • No Down Payment: Qualified borrowers can finance up to 100% of the home's purchase price.

    • Competitive Interest Rates: Government backing helps lenders offer competitive mortgage rates.

    • No Private Mortgage Insurance (PMI): USDA loans do not require traditional PMI. Instead, they include a lower upfront guarantee fee and an annual fee that is typically less expensive than PMI.

    • Affordable Homeownership: Designed to help eligible buyers purchase a home with lower upfront costs.

    USDA loan requirements

    To qualify, borrowers generally must meet the following requirements:

    • Eligible Property Location: The home must be located in a USDA-eligible rural or suburban area.

    • Income Limits: Household income generally cannot exceed 115% of the area's median income.

    • Credit Requirements: The USDA does not set a minimum credit score, but many participating lenders prefer a score of 620 or higher.

    • Primary Residence: The home must be your primary residence.

    Not sure if a property qualifies? Many suburban communities are eligible for USDA financing, even if they don't seem rural.

    Wondering if you're eligible for a USDA loan? Use our Rate Finder and Soft Credit Check to compare USDA, VA, FHA, and Conventional loan options without affecting your credit score.

    → Find My Mortgage Rate

  • A Jumbo loan is a mortgage that exceeds the conforming loan limits established by the Federal Housing Finance Agency (FHFA). Because jumbo loans cannot typically be purchased by Fannie Mae or Freddie Mac, lenders assume more risk and often require stronger financial qualifications.

    Jumbo loan requirements

    Qualification requirements vary by lender, but many jumbo loans require:

    • Excellent Credit: Many lenders prefer a credit score of 700 or higher.

    • Larger Down Payment: Down payments are often 10% to 20% or more, depending on the loan amount and borrower qualifications.

    • Lower Debt-to-Income (DTI) Ratio: Lenders may require a lower DTI than they do for conventional loans.

    • Cash Reserves: Many lenders ask borrowers to show enough savings to cover 6 to 12 months of mortgage payments after closing.

    Benefits of a jumbo loan

    • Finance homes that exceed conforming loan limits.

    • Available with fixed-rate and adjustable-rate mortgage (ARM) options.

    • Can be used to purchase high-value primary residences, second homes, or investment properties, depending on the lender and loan program.

    Things to consider

    Because jumbo loans involve larger loan amounts, lenders typically have stricter underwriting requirements, including higher credit standards, larger cash reserves, and more extensive income documentation.

    Conforming loan limits are updated periodically and may vary by county. A loan that is considered "jumbo" in one area may be a conforming loan in another.

    Need financing for a higher-priced home? Use our Rate Finder and Soft Credit Check to compare Jumbo, Conventional, FHA, VA, and USDA loan options without affecting your credit score.

    → Find My Mortgage Rate

  • FHA and Conventional loans are two of the most common mortgage options, but they're designed for different borrowers. FHA loans offer more flexible credit requirements and lower down payment options, while Conventional loans often provide lower long-term costs for borrowers with stronger credit.

    FHA Loan

    An FHA loan may be a good choice if you're a first-time homebuyer or have limited savings or a lower credit score.

    Key features include:

    • Backed by the Federal Housing Administration (FHA).

    • Credit scores as low as 580 with a 3.5% down payment, or 500–579 with 10% down.

    • Requires an upfront Mortgage Insurance Premium (MIP) and monthly mortgage insurance.

    • Can only be used to purchase or refinance a primary residence.

    • The property must meet FHA minimum property standards.

    Conventional Loan

    A Conventional loan is often a better option for borrowers with stronger credit and a stable financial profile.

    Key features include:

    • Offered by private lenders and not backed by the government.

    • Typically requires a minimum credit score of 620.

    • Qualified buyers may be able to put down as little as 3%.

    • Private Mortgage Insurance (PMI) is usually required if the down payment is less than 20%, but it can generally be removed once you have enough equity.

    • Can be used to finance primary residences, second homes, and investment properties.

    • Generally has fewer property restrictions than an FHA loan.

  • An FHA loan may be a better fit if you:

    • Have a lower credit score.

    • Have limited savings for a down payment.

    • Are buying your first home.

    A Conventional loan may be a better choice if you:

    • Have good to excellent credit.

    • Can qualify for competitive interest rates.

    • Want the ability to remove PMI after building sufficient equity.

    • Are purchasing a second home or investment property.

    The right loan depends on your credit score, down payment, income, debt-to-income (DTI) ratio, and long-term financial goals.

    Not sure which loan is right for you? Use our Rate Finder and Soft Credit Check to compare FHA, Conventional, VA, USDA, and Jumbo loan options without affecting your credit score.

    → Compare My Mortgage Options

  • The best mortgage loan depends on your credit score, down payment, income, debt-to-income (DTI) ratio, military eligibility, and long-term financial goals. While every borrower's situation is different, these are the most common loan options:

    Conventional Loan
    A conventional loan is often the best choice if you have good credit (typically 620 or higher) and a stable income. Qualified buyers may be able to put down as little as 3%, and PMI can usually be removed once enough equity has been built.

    FHA Loan
    An FHA loan is a popular option for first-time homebuyers and borrowers with lower credit scores or limited savings. Qualified borrowers may be eligible with a 3.5% down payment and a credit score of 580 or higher.

    VA Loan
    VA loans are available to eligible veterans, active-duty service members, and certain surviving spouses. They offer valuable benefits, including no down payment and no monthly private mortgage insurance (PMI).

    USDA Loan
    USDA loans help eligible buyers purchase homes in qualified rural and suburban areas. They offer 100% financing with no down payment for borrowers who meet income and property eligibility requirements.

    Adjustable-Rate Mortgage (ARM)
    An ARM may be a good fit if you expect to sell, refinance, or move within a few years. These loans typically offer a lower introductory interest rate that adjusts after the initial fixed-rate period.

    Jumbo Loan
    A jumbo loan is designed for borrowers purchasing higher-priced homes that exceed the conforming loan limits established by the Federal Housing Finance Agency (FHFA). These loans typically require stronger credit, larger down payments, and additional financial reserves.

  • The right mortgage depends on your unique financial situation. Factors such as your credit score, down payment, income, monthly debts, and the type of home you're buying all play a role in determining the best loan program.

    Not sure which mortgage is right for you? Use our Rate Finder and Soft Credit Check to compare personalized loan options without affecting your credit score.

    → Find My Mortgage Rate

Fixed vs Adjustable

  • A fixed-rate mortgage is a home loan with an interest rate that remains the same for the entire loan term. Because the interest rate never changes, your principal and interest payment stays the same throughout the life of the loan, making it easier to budget for your monthly housing costs.

    How a fixed-rate mortgage works

    • Locked Interest Rate: Your interest rate is set when you close on your loan and does not change.

    • Predictable Monthly Payments: Your principal and interest payment remains the same each month.

    • Protection from Rising Rates: Your mortgage payment won't increase if market interest rates rise.

    • Variable Taxes and Insurance: While your loan payment stays fixed, your total monthly payment may change if property taxes or homeowners insurance increase.

    Common loan terms

    The most common fixed-rate mortgage options are:

    • 30-Year Fixed: Lower monthly payments spread over a longer repayment period.

    • 15-Year Fixed: Higher monthly payments, but you'll build equity faster and typically pay less interest over the life of the loan.

    Pros and cons

    Benefits:

    • Predictable monthly principal and interest payments.

    • Easier budgeting and long-term financial planning.

    • Protection against rising interest rates.

    Considerations:

    • Initial interest rates may be higher than those offered by some adjustable-rate mortgages (ARMs).

    • If market interest rates fall, you'll typically need to refinance to take advantage of lower rates.

    A fixed-rate mortgage is often the best choice for buyers who plan to stay in their home for several years and want the security of stable monthly payments.

    Not sure if a fixed-rate mortgage is right for you? Use our Rate Finder and Soft Credit Check to compare fixed-rate and adjustable-rate loan options without affecting your credit score.

    → Compare Mortgage Options

  • An adjustable-rate mortgage (ARM) is a home loan that starts with a fixed interest rate for a set period of time and then adjusts periodically based on market conditions. Because ARMs typically offer a lower introductory interest rate than fixed-rate mortgages, they can provide lower monthly payments during the initial fixed-rate period.

    How an ARM works

    • Initial Fixed Period: Your interest rate remains fixed for the first 3, 5, 7, or 10 years, depending on the loan you choose.

    • Adjusting Interest Rate: After the fixed period ends, your interest rate adjusts at scheduled intervals, typically every six months or once a year.

    • Market Index: Rate adjustments are based on a financial index, such as the Secured Overnight Financing Rate (SOFR), plus a fixed lender margin.

    Rate adjustment protections

    Most ARMs include safeguards that limit how much your interest rate can increase:

    • Initial Adjustment Cap: Limits how much your rate can increase after the fixed-rate period ends.

    • Periodic Adjustment Cap: Limits how much your rate can change during each adjustment period.

    • Lifetime Cap: Sets the maximum interest rate you can be charged over the life of the loan.

    Is an ARM right for you?

    An adjustable-rate mortgage may be a good option if you:

    • Plan to sell or refinance before the fixed-rate period ends.

    • Expect your income to increase over time.

    • Want a lower initial monthly payment.

    Things to consider

    While ARMs often start with lower interest rates, your monthly payment may increase if interest rates rise after the introductory period. If you plan to stay in your home for many years, a fixed-rate mortgage may provide greater long-term payment stability.

    Not sure whether a fixed-rate mortgage or an ARM is right for you? Use our Rate Finder and Soft Credit Check to compare personalized loan options without affecting your credit score.

    → Compare Mortgage Options

  • Neither option is better for everyone. A fixed-rate mortgage offers stable monthly payments for the life of the loan, while an adjustable-rate mortgage (ARM) typically starts with a lower interest rate that can change over time. The best choice depends on your financial goals, how long you plan to own the home, and your comfort with changing monthly payments.

    Fixed-Rate Mortgage

    A fixed-rate mortgage may be the better choice if you:

    • Plan to stay in your home for many years.

    • Want predictable monthly principal and interest payments.

    • Prefer protection from rising interest rates.

    • Value long-term budgeting and financial stability.

    Adjustable-Rate Mortgage (ARM)

    An adjustable-rate mortgage may be the better choice if you:

    • Plan to sell or refinance before the initial fixed-rate period ends.

    • Want a lower introductory interest rate and monthly payment.

    • Expect your income to increase over time.

    • Are comfortable with the possibility of future payment changes.

    Which mortgage is right for you?

    If you plan to own your home for the long term, a fixed-rate mortgage is often the better option because your interest rate and principal and interest payment remain the same throughout the loan term.

    If you expect to move or refinance within a few years, an ARM may help you save money during the initial fixed-rate period. However, it's important to understand that your interest rate and monthly payment could increase once the adjustment period begins.

    Not sure which loan fits your goals? Use our Rate Finder and Soft Credit Check to compare fixed-rate and adjustable-rate mortgage options based on your financial situation—without affecting your credit score.

    → Compare Mortgage Options

  • An adjustable-rate mortgage (ARM) can be a good choice if you don't expect to keep the loan for a long time. Because ARMs typically offer a lower introductory interest rate than fixed-rate mortgages, they can help reduce your monthly payments during the initial fixed-rate period.

    An ARM may be a good fit if:

    • You plan to move soon: If you expect to sell your home within 3, 5, 7, or 10 years, you may pay off the loan before the interest rate begins adjusting.

    • You plan to refinance: If you expect to refinance before the fixed-rate period ends, you may benefit from the lower introductory rate.

    • You want lower initial payments: An ARM can reduce your monthly payment during the introductory fixed-rate period.

    • You expect your income to increase: If your earnings are likely to grow over time, you may be more comfortable with the possibility of higher payments in the future.

    When a fixed-rate mortgage may be better

    A fixed-rate mortgage is often the better choice if you:

    • Plan to stay in your home for many years.

    • Want predictable monthly principal and interest payments.

    • Prefer protection from future interest rate increases.

    • Value long-term budgeting and payment stability.

    Choosing between a fixed-rate mortgage and an ARM depends on your financial goals, how long you expect to own the home, and your comfort with changing monthly payments.

    Not sure which option is right for you? Use our Rate Finder and Soft Credit Check to compare fixed-rate and adjustable-rate mortgage options without affecting your credit score.

    → Compare Mortgage Options

Down Payments

  • The amount you need for a down payment depends on the type of mortgage you choose. While many buyers believe they need 20% down, several loan programs allow qualified borrowers to purchase a home with much less.

    Common down payment requirements

    Is 20% down required?

    No. While putting 20% down can eliminate Private Mortgage Insurance (PMI) on most conventional loans and reduce your monthly payment, many homebuyers successfully purchase a home with a smaller down payment.

    Other costs to budget for

    In addition to your down payment, you should also plan for:

    • Closing Costs: Typically 2% to 5% of the purchase price.

    • Earnest Money Deposit: A good-faith deposit that usually counts toward your down payment.

    • Home Inspection: An out-of-pocket expense before closing.

    • Moving Expenses and Emergency Savings: It's a good idea to have cash reserves after purchasing your home.

    Want to know how much you should save? Use our Mortgage Affordability Calculator to estimate your down payment, monthly payment, and closing costs based on your home price and loan options.

    → Calculate My Home Buying Budget

  • Yes. Many qualified homebuyers can purchase a home with as little as 3% down through certain Conventional loan programs. While a larger down payment can lower your monthly payment, it isn't required to become a homeowner.

    Who may qualify?

    You may be eligible for a 3% down conventional loan if you:

    • Have a credit score of 620 or higher (lender requirements may vary).

    • Plan to use the home as your primary residence.

    • Meet your lender's income, employment, and debt-to-income (DTI) requirements.

    Some Conventional loan programs are designed specifically for first-time homebuyers and low-to-moderate-income borrowers.

    What should I expect?

    With a 3% down payment:

    • Private Mortgage Insurance (PMI) is typically required because your down payment is less than 20%.

    • PMI can usually be removed once you have enough equity and meet your lender's requirements.

    • Your monthly payment will generally be higher than if you made a larger down payment, but you'll need less cash upfront to purchase your home.

    Can I use gift funds?

    In many cases, gift funds from an eligible family member or approved down payment assistance programs can be used toward all or part of your down payment, depending on the loan program and lender guidelines.

    Want to see if you qualify? Use our Rate Finder and Soft Credit Check to compare loan options and estimate your monthly payment without affecting your credit score.

    → Find My Mortgage Rate

  • Yes. Some homebuyers can purchase a home with no down payment by qualifying for a VA loan or USDA loan. If you don't qualify for these programs, there are other low down payment options and down payment assistance programs that can help make homeownership more affordable.

    Zero down payment loan options

    VA Loans

    • Available to eligible veterans, active-duty service members, and certain surviving spouses.

    • Offer 100% financing with no down payment.

    • Do not require monthly Private Mortgage Insurance (PMI).

    USDA Loans

    • Available to eligible buyers purchasing homes in qualified rural and suburban areas.

    • Offer 100% financing with no down payment.

    • Household income and property eligibility requirements apply.

    Other affordable home loan options

    If you don't qualify for a zero-down loan, you may still be able to buy a home with a small down payment:

    • Conventional Loans: Qualified borrowers may be eligible with as little as 3% down.

    • FHA Loans: Qualified borrowers may purchase a home with 3.5% down.

    Many buyers also qualify for down payment assistance programs, grants, or eligible gift funds to help cover some or all of their required down payment.

    Remember: You'll still need some cash at closing

    Even with a no down payment mortgage, you'll usually need funds for:

    • Closing costs (typically 2% to 5% of the purchase price)

    • Earnest money deposit (which is generally applied toward your purchase at closing)

    • Home inspection and appraisal fees

    Depending on the loan program, you may also be able to negotiate seller concessions to help cover some of your closing costs.

    Want to see which zero or low down payment loan you may qualify for? Use our Rate Finder and Soft Credit Check to compare VA, USDA, FHA, and Conventional loan options without affecting your credit score.

    → Find My Mortgage Rate

  • No. You don't need a 20% down payment to buy a home. Many mortgage programs allow qualified buyers to purchase a home with much less, and some even offer no down payment.

    Common down payment requirements

  • A 20% down payment on a conventional loan can provide several benefits, including:

    However, many buyers choose a smaller down payment so they can keep more money available for closing costs, moving expenses, home improvements, and emergency savings.

    Want to see how different down payment amounts affect your monthly payment? Use our Mortgage Payment Calculator to compare your options.

    → Calculate My Monthly Payment

  • Down payment assistance (DPA) programs help eligible homebuyers cover some or all of their down payment and closing costs. These programs are offered by state and local housing agencies, nonprofit organizations, and other approved providers.

    Common types of assistance

    • Grants: Funds that typically do not have to be repaid.

    • Deferred Loans: Low- or no-interest loans that are usually repaid when you sell, refinance, or move.

    • Forgivable Loans: Loans that may be forgiven if you meet the program's occupancy and time requirements.

    Who may qualify?

    Eligibility varies by program, but many require:

    • You use the home as your primary residence.

    • Your household income falls within local program limits.

    • Completion of a homebuyer education course.

    • You meet the lender's mortgage qualification requirements.

    Many programs are available to first-time homebuyers, although some also assist repeat buyers.

    Wondering if down payment assistance is available where you're buying? Use our Rate Finder to explore loan options, and our team can help identify programs that may be available based on your location and qualifications.

    → Find My Mortgage Rate

Closing Costs

  • Closing costs are the fees and expenses you pay when you finalize a home purchase or refinance. They are separate from your down payment and typically range from 2% to 5% of the home's purchase price, although the exact amount varies based on your loan, property, and location.

    What's included in closing costs?

    Common closing costs may include:

  • Both the buyer and the seller typically pay closing costs, but each is responsible for different fees. The exact costs depend on the purchase agreement, your location, and the type of mortgage.

    Closing costs for buyers

    Homebuyers typically pay costs related to obtaining a mortgage and completing the purchase, including:

    • Loan Fees: Origination, underwriting, and other lender charges.

    • Appraisal & Inspection Fees: Costs to evaluate the home's value and condition.

    • Title & Escrow Fees: Title search, title insurance, and closing or settlement services.

    • Prepaid Expenses: Homeowners insurance, property taxes, and prepaid interest.

    • Recording Fees: Government fees for recording the property transfer.

    Closing costs for sellers

    Home sellers commonly pay costs associated with transferring ownership, such as:

    • Real Estate Agent Compensation (if applicable).

    • Owner's Title Insurance (where customary).

    • Transfer Taxes and Recording Fees (where required).

    • Prorated Property Taxes and HOA Dues (if applicable).

    • Seller Concessions, if negotiated to help cover a buyer's closing costs.

    Can closing costs be negotiated?

    Yes. Buyers and sellers can negotiate who pays certain closing costs during the purchase process. Depending on market conditions, a seller may agree to provide seller concessions to help reduce a buyer's out-of-pocket expenses.

    Want to estimate your closing costs? Use our Mortgage Payment Calculator to estimate your monthly payment and cash needed to close, or use our Rate Finder to explore loan options that fit your budget.

    → Estimate My Home Buying Costs

  • In some cases, yes. You may be able to lower your out-of-pocket costs by:

    Want to estimate your closing costs? Use our Mortgage Payment Calculator to estimate your monthly payment, down payment, and expected closing costs as you plan your home purchase.

    → Estimate My Home Buying Costs

  • Closing costs typically range from 2% to 5% of a home's purchase price, depending on your loan type, location, and lender. These costs are separate from your down payment and should be included in your homebuying budget.

    For example:

    • A $300,000 home may have closing costs of approximately $6,000 to $15,000.

    • A $400,000 home may have closing costs of approximately $8,000 to $20,000.

    • A $500,000 home may have closing costs of approximately $10,000 to $25,000.

    What's included in closing costs?

    Closing costs may include:

    • Loan Fees: Charges for processing, underwriting, and funding your mortgage.

    • Appraisal Fee: The cost of determining the home's market value.

    • Credit Report & Inspection Fees: Costs for reviewing your credit and, when applicable, inspections.

    • Title & Escrow Fees: Title search, title insurance, and escrow or settlement services.

    • Prepaid Expenses: Property taxes, homeowners insurance, and prepaid interest collected at closing.

    What affects closing costs?

    Your total closing costs depend on several factors, including:

    • Purchase price

    • Loan type

    • Property location

    • Lender fees

    • Property taxes and insurance

    • Seller concessions or lender credits

    While buyers typically pay most closing costs, it's sometimes possible to negotiate for the seller to contribute toward these expenses.

    Want a personalized estimate? Use our Mortgage Affordability Calculator to estimate your down payment, closing costs, and monthly mortgage payment based on your home price and loan options.

    → Estimate My Home Buying Costs

  • Sometimes. Whether you can finance your closing costs depends on your loan type and your available home equity. While it's often possible during a mortgage refinance, it's more limited when buying a home.

    Options for covering closing costs

    If you're purchasing a home, you may be able to reduce your upfront costs by using:

    • Seller Concessions: The seller may agree to pay some of your closing costs as part of the purchase agreement.

    • Lender Credits: Your lender may cover part or all of your closing costs in exchange for a slightly higher mortgage interest rate.

    • Down Payment Assistance: Some programs help eligible buyers pay closing costs and other upfront expenses.

    Can I finance closing costs?

    In some situations, yes.

    • Refinance Loans: Closing costs can often be added to the new loan balance if you have enough equity and meet lender requirements.

    • Purchase Loans: Financing closing costs may be possible in limited situations, but the loan amount must meet program guidelines and the home's appraised value must support the financing.

    Financing your closing costs reduces the amount of cash you'll need at closing, but it also increases your loan balance, which means you'll pay interest on those costs over time.

    Want to see how closing costs affect your monthly payment? Use our Mortgage Calculator to compare different loan amounts, down payments, and financing options before you buy.

    → Calculate My Mortgage Payment

  • Yes. Some closing costs are negotiable, while others are fixed by your lender, government agencies, or third-party service providers. Shopping around and comparing loan offers can help reduce the amount you pay at closing.

    Closing costs that may be negotiable

    Depending on your loan and location, you may be able to negotiate or reduce:

    • Lender Fees: Origination, processing, and underwriting fees.

    • Title & Escrow Services: In many cases, you can choose your own title or settlement company.

    • Seller Concessions: A seller may agree to pay some of your closing costs as part of the purchase agreement.

    • Lender Credits: Your lender may cover part of your closing costs in exchange for a slightly higher mortgage interest rate.

    Closing costs that are usually fixed

    Some costs generally cannot be negotiated, including:

    • Government recording fees and transfer taxes.

    • Property taxes and homeowners insurance collected at closing.

    • Prepaid interest.

    • Appraisal, credit report, and other third-party fees when the service provider or fee is required by the lender.

    How can I lower my closing costs?

    You may be able to reduce your upfront costs by:

    Want to compare loan options and estimate your closing costs? Use our Rate Finder and Soft Credit Check to explore mortgage options without affecting your credit score.

    → Find My Mortgage Rate

Refinancing

  • Refinancing your mortgage may be a good idea if it helps you achieve your financial goals, such as lowering your monthly payment, reducing your interest rate, shortening your loan term, or accessing your home's equity. Whether refinancing makes sense depends on your current loan, available mortgage rates, closing costs, and how long you plan to stay in your home.

    When refinancing may make sense

    You may benefit from refinancing if you want to:

    • Lower your interest rate and reduce your monthly mortgage payment.

    • Shorten your loan term, such as switching from a 30-year mortgage to a 15-year mortgage.

    • Replace an Adjustable-Rate Mortgage (ARM) with a fixed-rate mortgage for more predictable payments.

    • Remove Private Mortgage Insurance (PMI) after building enough home equity.

    • Use a Cash-Out Refinance to access equity for home improvements, debt consolidation, or other major expenses.

    When refinancing may not be the best choice

    Refinancing may not be worthwhile if:

    • The closing costs outweigh the long-term savings.

    • You plan to sell or move before you recover your refinancing costs.

    • A new loan would result in a higher interest rate or higher overall borrowing costs.

    • Extending your loan term would significantly increase the total interest paid over time.

    Before refinancing, compare your estimated monthly savings with the cost of the new loan to determine your break-even point.

    Want to see if refinancing could save you money? Use our Mortgage Calculator to compare payments, or use our Rate Finder and Soft Credit Check to explore today's refinance rates without affecting your credit score.

    → Compare My Refinance Options

  • Refinancing is worth considering when the long-term savings or financial benefits outweigh the cost of getting a new loan. Whether refinancing makes sense depends on your interest rate, home equity, closing costs, and how long you plan to keep your mortgage.

    Refinancing may be worth it if you want to:

    • Lower your interest rate and reduce your monthly mortgage payment.

    • Shorten your loan term, such as switching from a 30-year mortgage to a 15-year mortgage to pay off your home sooner.

    • Replace an Adjustable-Rate Mortgage (ARM) with a fixed-rate mortgage for more predictable monthly payments.

    • Remove Private Mortgage Insurance (PMI) after building enough equity in your home.

    • Use a Cash-Out Refinance to access your home's equity for renovations, debt consolidation, or other major expenses.

    When refinancing may not be worth it

    Refinancing may not be the best option if:

    • The closing costs outweigh your potential savings.

    • You plan to sell or move before you reach your break-even point.

    • A new loan would increase your overall borrowing costs.

    • Extending your loan term would result in paying significantly more interest over time.

    Before refinancing, compare your estimated monthly savings with the cost of the new loan to determine how long it will take to recover your closing costs.

    Want to see if refinancing could save you money? Use our Mortgage Calculator to compare payments, or use our Rate Finder and Soft Credit Check to explore today's refinance options without affecting your credit score.

    → Compare My Refinance Options

  • Refinancing a mortgage typically costs between 2% and 5% of the loan amount, although the exact cost depends on your lender, loan type, property location, and whether you choose optional features like discount points.

    For example:

    • A $250,000 refinance may cost approximately $5,000 to $12,500.

    • A $300,000 refinance may cost approximately $6,000 to $15,000.

    • A $400,000 refinance may cost approximately $8,000 to $20,000.

    Common refinance closing costs

    Your refinance costs may include:

    • Loan Origination Fees: Charges for processing and underwriting your new mortgage.

    • Appraisal Fee: The cost of determining your home's current market value, if required.

    • Title & Escrow Fees: Title search, title insurance, and settlement services.

    • Credit Report Fee: The cost of reviewing your credit history.

    • Recording Fees: Government fees for recording the new mortgage.

    • Prepaid Interest & Escrow Funding: Depending on your loan and closing date, you may need to prepay interest or establish a new escrow account.

    What affects refinance costs?

    Several factors can change how much you'll pay, including:

    • Loan amount

    • Loan type

    • Property location

    • Lender fees

    • Whether an appraisal is required

    • Whether you choose to purchase discount points to reduce your interest rate

    Can refinance costs be financed?

    In many refinance transactions, closing costs can be added to the new loan balance if you have enough home equity and your loan qualifies. You may also be able to choose lender credits, which reduce your upfront costs in exchange for a slightly higher interest rate.

    Want to estimate your refinance costs and monthly payment? Use our Mortgage Calculator to compare different refinance scenarios and see how they could affect your monthly payment.

    → Calculate My Refinance Savings

  • Yes. You may still be able to refinance your mortgage with bad credit, although qualifying can be more challenging. Your options depend on your credit score, home equity, income, loan type, and payment history.

    Refinancing options with lower credit

    If your credit isn't perfect, you may still qualify for:

    • Conventional Refinancing: Many lenders look for a credit score of 620 or higher, although requirements vary.

    • FHA Refinancing: FHA refinance programs may offer more flexible credit requirements than conventional loans for qualified borrowers.

    • VA and USDA Refinancing: If you already have a VA or USDA loan, you may qualify for refinance programs with simplified documentation and flexible eligibility requirements.

    How to improve your chances of approval

    You may be able to qualify for better refinance terms by:

    Will I get the best interest rate?

    Borrowers with higher credit scores generally qualify for lower interest rates. However, even if your credit isn't ideal, refinancing may still help you lower your monthly payment, remove Private Mortgage Insurance (PMI), change your loan term, or access your home's equity if the overall financial benefits outweigh the costs.

    Wondering what refinance options you may qualify for? Use our Rate Finder and Soft Credit Check to explore refinance options without affecting your credit score.

    → Check My Refinance Options

  • The earliest you can refinance depends on your current mortgage and the type of refinance you're requesting. Some homeowners may be eligible within a few months, while others must wait longer to meet loan program or lender requirements.

    Conventional loans

    • Rate-and-Term Refinance: Some borrowers may be eligible shortly after closing, although many lenders require a waiting period before refinancing.

    • Cash-Out Refinance: Most lenders require you to own the home for at least 6 months before completing a cash-out refinance. Additional equity and qualification requirements also apply.

    FHA loans

    VA loans

    USDA loans

    Things to consider before refinancing

    Even if you're eligible to refinance, it may not be the right time. Before applying, consider:

    • Whether you'll save enough to recover your closing costs.

    • Your current interest rate compared to available refinance rates.

    • Your credit score, income, and home equity.

    • Your long-term plans for the home.

    Want to see if refinancing could benefit you? Use our Rate Finder and Soft Credit Check to explore refinance options without affecting your credit score.

    → Compare My Refinance Options

Credit Scores

  • Borrowers with higher credit scores typically qualify for the lowest mortgage interest rates. While every lender sets its own requirements, a credit score of 740 or higher generally provides access to the most competitive mortgage rates, with additional pricing benefits often leveling off around 760 to 780.

    How credit scores affect mortgage rates

    • 740+ – Typically qualifies for the best available interest rates and loan terms.

    • 680–739 – May still qualify for competitive rates, but costs can be slightly higher.

    • 620–679 – Meets the minimum credit score for many conventional loans, though interest rates and fees are often higher.

    • Below 620 – Conventional loan options become more limited, but some government-backed loan programs may still be available for qualified borrowers.

    Minimum credit scores by loan type

    Your credit score isn't the only factor

    Mortgage rates are also influenced by:

    Even if your credit score isn't in the highest tier, you may still qualify for a competitive mortgage by having strong income, a lower debt-to-income ratio, and a larger down payment.

    Want to see what mortgage rates you may qualify for? Use our Rate Finder and Soft Credit Check to compare personalized loan options without affecting your credit score.

    → Check My Mortgage Rate

  • Yes. A 620 credit score is enough to qualify for many mortgage programs, although the interest rate and loan options available to you may be more limited than they are for borrowers with higher credit scores.

    Mortgage options with a 620 credit score

    Ways to improve your approval chances

    You may qualify for better terms by:

    • Keeping your debt-to-income (DTI) ratio low.

    • Providing stable employment and income.

    • Making a larger down payment.

    • Avoiding new debt before applying.

    Wondering what loan options you qualify for? Use our Rate Finder and Soft Credit Check to compare mortgage options without affecting your credit score.

    → See What I Qualify For

  • No—not if you're simply comparing mortgage rates or getting prequalified. Most lenders use a soft credit check for prequalification, which does not affect your credit score.

    Soft credit checks

    A soft inquiry is commonly used when:

    • Checking your own credit.

    • Getting prequalified for a mortgage.

    • Comparing estimated mortgage rates.

    Soft inquiries are not visible to lenders and do not impact your credit score.

    Hard credit checks

    A hard inquiry typically occurs when you submit a formal mortgage application or request a preapproval.

    While a hard inquiry may temporarily lower your credit score by a few points, the impact is usually small.

    Shopping for mortgage rates

    Credit scoring models recognize that borrowers compare lenders before choosing a mortgage. As a result, multiple mortgage-related hard inquiries made within a short period are generally treated as a single inquiry, helping minimize the impact on your credit score.

    Want to compare mortgage rates without affecting your credit? Use our Rate Finder and Soft Credit Check to explore personalized mortgage options.

    → Find My Mortgage Rate

  • Improving your credit before applying for a mortgage can help you qualify for better interest rates and loan terms. Even small improvements may reduce your monthly payment over the life of your loan.

    Steps to improve your credit

    • Pay your bills on time. Payment history is one of the biggest factors affecting your credit score.

    • Lower your credit card balances. Keeping your credit utilization below 30%—and ideally below 10%—can improve your score.

    • Review your credit reports. Check for errors and dispute any inaccurate information.

    • Avoid opening new credit accounts. New applications can temporarily lower your score.

    • Keep older accounts open. A longer credit history can benefit your credit score.

    • Reduce existing debt. Lowering your debt can improve both your credit score and your debt-to-income ratio.

    How long does it take?

    Some borrowers see improvements in as little as 30 to 90 days, while larger changes may take several months depending on their financial situation.

    Want to see how your credit could affect your mortgage options? Use our Rate Finder and Soft Credit Check to explore personalized loan options without affecting your credit score.

    → Check My Mortgage Options

Mortgage Process

  • Buying a home typically takes about 4 to 5 months, although the timeline varies based on your financial readiness, the local housing market, and how quickly you find the right home. Once you're under contract, most mortgage loans close within 30 to 45 days.

    Typical home buying timeline

    • Get Pre-Approved: A few days to about a week.

    • Find a Home: A few weeks to several months.

    • Make an Offer: A few days to negotiate and reach an agreement.

    • Mortgage Processing & Underwriting: Usually 30 to 45 days.

    • Closing: Sign your documents, pay closing costs, and receive your keys.

    What can delay closing?

    Common reasons for delays include:

    • Low home appraisal.

    • Missing financial documents.

    • Title or escrow issues.

    • Home inspection concerns.

    • Changes to your employment, income, or credit during the loan process.

    Ready to start your home buying journey? Use our Rate Finder and Soft Credit Check to see what loan options you may qualify for without affecting your credit score.

    → Get Pre-Qualified

  • After you're pre-approved, the next step is finding a home within your approved price range. Once your offer is accepted, your lender will begin the final mortgage approval process.

    What happens next?

    1. Shop for a home that fits your budget.

    2. Submit an offer with your real estate agent.

    3. Sign a purchase agreement if your offer is accepted.

    4. Complete the home inspection and appraisal.

    5. Mortgage underwriting reviews your financial information and the property.

    6. Receive final approval and a Clear to Close.

    7. Attend closing, sign your documents, and receive your keys.

    Protect your pre-approval

    Until your loan closes, avoid:

    • Opening new credit accounts.

    • Financing a vehicle or other large purchase.

    • Changing jobs without discussing it with your lender.

    • Missing bill payments.

    • Making large unexplained bank deposits.

    Most mortgage pre-approvals remain valid for 60 to 90 days, although this varies by lender.

    Ready to take the next step? Use our Rate Finder to begin your mortgage application and move confidently toward homeownership.

    → Start My Mortgage Application

  • Mortgage underwriting is the process lenders use to determine whether you qualify for a home loan. An underwriter reviews your finances and the property to ensure the loan meets the lender's guidelines before giving final approval.

    What does an underwriter review?

    Your underwriter typically evaluates:

    Possible underwriting decisions

    The underwriter may:

    • Approve your mortgage.

    • Approve with conditions, requiring additional documentation.

    • Deny the application if loan requirements aren't met.

    Underwriting is one of the final steps before your lender issues a Clear to Close.

    Want to prepare for underwriting? Use our Rate Finder to start your application and understand what documents you'll need before applying.

    → Get Started

  • A mortgage application can be denied for several reasons, including credit, income, debt, or property-related issues. Understanding why your application was denied can help you improve your chances of approval in the future.

    Common reasons for mortgage denial

    • High debt-to-income (DTI) ratio.

    • Low credit score or recent late payments.

    • Insufficient or unstable income.

    • Employment changes during the loan process.

    • Property appraisal issues.

    • Incomplete or missing documentation.

    • Large unexplained bank deposits or new debt before closing.

    What should I do next?

    If your application is denied:

    • Review your adverse action notice, which explains the reason for the decision.

    • Check your credit reports for errors.

    • Ask your lender what changes could improve your approval chances.

    • Work on improving your credit, reducing debt, or increasing your down payment before reapplying.

    A mortgage denial doesn't necessarily mean you won't qualify in the future. Many borrowers become eligible after addressing the issues identified by the lender.

    Want to explore other mortgage options? Use our Rate Finder and Soft Credit Check to see what loans you may qualify for without affecting your credit score.

    → Explore My Loan Options

  • Once you're under contract, it's important to keep your finances as stable as possible until your loan closes. Major financial changes can delay—or even prevent—final mortgage approval.

    Avoid these common mistakes

    • Opening new credit cards or loans.

    • Financing a car, furniture, or appliances.

    • Missing or making late payments.

    • Co-signing a loan for someone else.

    • Changing jobs without speaking to your lender.

    • Making large unexplained deposits or withdrawals.

    • Moving money between accounts without documentation.

    • Spending money needed for your down payment or closing costs.

    Why does this matter?

    Your lender may review your credit, employment, and financial information again before closing. Significant changes could affect your loan approval, even after you've been pre-approved.

    Stay in close contact with your lender throughout the process and let them know about any financial changes before making major decisions.

    Ready to begin your home buying journey? Use our Rate Finder and Soft Credit Check to explore mortgage options and get started with confidence.

    → Find My Mortgage Rate

First-Time Homebuyers

Cash Out

  • First-time homebuyer programs can help make homeownership more affordable through low down payment loans, down payment assistance, grants, and other financial incentives. Many programs are available through federal, state, and local agencies.

    Common first-time homebuyer loan programs

    Additional homebuyer assistance

    Many first-time buyers may also qualify for:

    • Down Payment Assistance (DPA): Grants or low-interest loans that help cover your down payment or closing costs.

    • Mortgage Credit Certificates (MCCs): Available in some areas to help reduce your federal income tax liability.

    • State and Local Housing Programs: Many states and local housing agencies offer assistance based on income, location, or occupation.

    Who qualifies as a first-time homebuyer?

    For many mortgage assistance programs, you're considered a first-time homebuyer if you haven't owned a primary residence within the past three years. Eligibility requirements vary by program.

    Want to see which first-time homebuyer programs you may qualify for? Use our Rate Finder and Soft Credit Check to explore personalized mortgage options without affecting your credit score.

    → Explore First-Time Homebuyer Options

  • Yes. Having student loan debt doesn't automatically prevent you from buying a home. Lenders look at your monthly student loan payment, credit score, income, and debt-to-income (DTI) ratio to determine whether you qualify.

    How student loans affect your mortgage application

    Lenders typically evaluate:

    • Your monthly student loan payment.

    • Your total debt-to-income (DTI) ratio.

    • Your credit history and payment record.

    • Your income and employment.

    If your student loans are deferred or in forbearance, your lender may calculate a monthly payment based on your loan balance, depending on the loan program.

    Ways to improve your chances

    You may qualify more easily by:

    • Reducing other monthly debt.

    • Improving your credit score.

    • Increasing your down payment.

    • Exploring different loan programs, such as Conventional, FHA, VA, or USDA loans.

    Student loan debt alone doesn't disqualify you from getting a mortgage. Many homeowners successfully qualify while still repaying student loans.

    Want to see what you may qualify for? Use our Rate Finder and Soft Credit Check to compare mortgage options without affecting your credit score.

    → Check My Mortgage Options

  • First-time homebuyers may qualify for special mortgage programs and financial assistance designed to make buying a home more affordable. Depending on your eligibility, these benefits can reduce the amount of cash needed to purchase a home.

    Common first-time homebuyer benefits

    • Lower down payment options.

    • Down payment and closing cost assistance.

    • More flexible credit requirements through certain loan programs.

    • Competitive mortgage rates for qualified borrowers.

    • Homebuyer education and counseling offered by many assistance programs.

    • Potential tax benefits or local incentives, depending on where you purchase.

    Many programs are designed to help buyers purchase a home sooner while reducing upfront costs.

    Want to find out which first-time homebuyer benefits you may qualify for? Use our Rate Finder to explore available mortgage options and assistance programs.

    → Get Started

  • The amount you'll need depends on your home price, loan type, and available assistance programs. Many first-time homebuyers purchase a home with a 3% to 5% down payment, while some qualified borrowers may be eligible for no down payment through certain loan programs.

    Common upfront costs

    You'll generally need money for:

    • Down Payment: As little as 3% for some conventional loans, 3.5% for FHA loans, or 0% for eligible VA and USDA loans.

    • Closing Costs: Typically 2% to 5% of the home's purchase price.

    • Moving and Initial Expenses: Utility deposits, moving costs, and unexpected home expenses.

    Ways to reduce upfront costs

    Many first-time buyers lower their out-of-pocket expenses by using:

    • Down payment assistance programs.

    • Gift funds from eligible family members.

    • Seller concessions.

    • Lender credits.

    The total amount you'll need varies based on your financial situation and the loan program you choose.

    Want to estimate how much you'll need to buy a home? Use our Mortgage Affordability Calculator to estimate your down payment, closing costs, and monthly payment.

    → Estimate My Home Buying Costs

  • A cash-out mortgage (or cash-out refinance) replaces your current home loan with a new, larger loan, letting you convert your home equity into cash at closing.

    How It Works

    • Home Equity: Equity is the portion of your home's value that you actually own (market value minus what you owe).

    • New Larger Loan: You apply for a new mortgage that is bigger than your current balance.

    • Payoff and Payout: The new loan first pays off your old mortgage. The remaining difference is given to you as a lump sum of cash (minus closing costs).

    • Single Payment: You make one monthly mortgage payment on the new, larger balance.

    Key Rules and Limits

    • Loan-to-Value (LTV) Limit: Most lenders cap cash-out refinances at 80% of your home's appraised value. This means you must leave at least 20% equity untouched in the home.

    • Home Appraisal: The lender requires a professional appraisal to confirm your property's current market value.

    • Credit and Income: You must re-qualify based on your credit score, debt-to-income ratio, and income to prove you can handle the larger monthly payment.

    Example of a Cash-Out Refinance

    • Home Value: $300,000

    • Current Mortgage Owed: $150,000

    • New Loan Amount: $200,000

    • Result: $150,000 goes to pay off the old loan, leaving you with $50,000 in cash (minus closing fees)

    f you'd like, let Mortgage Automated know:

    Mortgage Automated can help you estimate how much cash you might be able to access.

  • Mortgage cash-out refinance closing costs typically range from 2% to 6% of the total new loan amount.

    Typical Cost Breakdown

    • Loan Origination Fee: 1% to 1.5% of the loan amount paid to the lender.

    • Appraisal Fee: $500 to $1,000+ to verify your home’s current market value.

    • Title Search & Insurance: $300 to $2,000+ to protect against ownership disputes.

    • Underwriting & Processing: $300 to $900 each for administrative handling.

    • Recording & Government Fees: $25 to $250 depending on local municipal charges.

    Managing Expenses

    • Upfront Payment: Paying cash at closing avoids adding to your overall debt.

    • Rolling Costs Into Loan: Financing the fees reduces your net cash payout and increases monthly payments.

    • No-Closing-Cost Options: Lenders cover fees in exchange for a higher interest rate.

    If you want, tell Mortgage Automated:

    Mortgage Automated tools are available to give you the best scenario so you can make your best decision.

  • 2% to 6% of the purchase price, running slightly higher than primary residences due to increased lender fees.

    Estimated Costs on a $300,000 Property

    • ✅ Total Range: $6,000 – $18,000 (2% to 6% of purchase price)

    • 📌 Low End (2%): $6,000 (minimal lender fees, cash purchase or lower-cost area)

    • 📌 High End (6%): $18,000 (heavy financing, commercial-grade loan fees, or points)

    Core Components of Investment Closing Costs

    • 🗒 Lender Fees (1–3%):

      • Loan origination charges

      • Application and underwriting fees

      • Discount points (optional to lower interest rates)

    • 🗓 Title & Escrow Services (1–2%):

      • Title search and lender's title insurance

      • Settlement or escrow closing fees

    • 📅 Government & Recording Fees (<1%):

      • Local recording fees

      • Transfer taxes (varies heavily by state/municipality)

    • 📌 Prepaids & Escrows (1%):

      • Advance property taxes

      • Homeowner's insurance upfront premium

      • Prepaid daily interest

    Key Rules for Real Estate Investors

    • 📉 No Gift Funds: Unlike primary residences, investment property closing costs generally cannot be covered by gift funds from relatives; lenders require you to source them entirely from your own liquid capital.

    • 📈 Tax Deductibility: Some fees (like loan origination and title expenses) add to your property's cost basis for depreciation, while others (like prepaid interest and property taxes) are immediately deductible.

    If you want a more precise estimate, tell Mortgage Automated:

  • A commercial cash-out refinance replaces your current building mortgage with a larger loan, giving you the difference in cash while you keep ownership.

    How the Math Works

    • Maximum LTV Cap: Lenders usually limit loans to 65%–75% of the property's appraised value.

    • Formula: (Current Appraised Value × Max LTV %) - Existing Mortgage - Closing Costs

    • Example (Proxy Assumptions):

      • Appraised Value: $2,000,000

      • Max LTV (70%): $1,400,000 new loan limit

      • Existing Mortgage Balance: $800,000

      • Closing Costs/Fees (3%): $42,000

      • Cash-Out Proceeds: $558,000 available at closing

    📌 Key Underwriting Requirements

    • DSCR (Debt Service Coverage Ratio): Properties generally need a 1.2 to 1.5 ratio to prove income covers the new payment.

    • Seasoning: Most lenders require 12 to 24 months of ownership before allowing a cash-out refinance.

    • Use of Proceeds: Traditional banks may require proof that funds go toward business expansion, improvements, or debt consolidation.

    💡 Strategic Options & Trade-Offs

    • ✅ Conventional Bank Refi: Lowest rates, strict DSCR and 65%–70% LTV caps.

    • ✅ SBA 504/7(a) Loans: Favorable long-term fixed rates, strict rules on business use.

    • ⚠️ Bridge Loans: Faster closing and higher LTV up to 75%, but carries much higher interest rates.

    If you want to tailor this, tell me:

    • What is the estimated property value and current loan balance?

    • What is the intended use of the cash (expansion, purchase, repairs)?

  • Lenders verify income for investment property mortgages using either your personal finances or the property's incoming rent via a Debt Service Coverage Ratio (DSCR).

    📊 Conventional Income Verification

    • Personal Documents: Lenders require 2 years of tax returns, W-2s, or 1099s.

    • Schedule E Analysis: Rental income from existing properties is calculated using IRS Schedule E.

    • 75% Rule: Lenders typically count only 75% of gross future lease income to factor in vacancies.

    • Asset Reserves: You must show 2 to 6 months of mortgage payments in liquid reserves.

    💡 DSCR (No Personal Income) Loans

    • Cash Flow Focus: Eligibility relies entirely on whether the property's rent covers the monthly mortgage (PITIA).

    • No W-2s Needed: Skip tax returns, pay stubs, and employment verification completely.

    • Higher Down Payments: Expect to put down a minimum of 20% to 25%.

    • Stricter Rates: Interest rates run higher than conventional loans to offset lender risk.

    If you want, tell Mortgage Automated:

    • Are you planning to use personal income or a DSCR loan?

    • Do you have existing rental properties?

    Mortgage Automated can give you a tailored document checklist.

  • Choosing the right real estate investment property type depends on your capital, risk tolerance, and how active you want to be as a manager.

    🏠 Residential Properties

    • Single-Family Rentals: Detached homes rented to one household.

      • Pros: Easier financing, simpler management, strong appreciation.

      • Cons: 100% vacancy loss when empty.

    • Small Multi-Family (Duplex to Fourplex): Properties with 2 to 4 housing units.

      • Pros: Multiple income streams; one vacant unit still generates cash flow.

      • Cons: Higher maintenance costs and heavier management load.

    • Short-Term Rentals (Vacation/Airbnbs): Nightly or weekly guest housing.

      • Pros: High potential revenue in peak tourist areas.

      • Cons: Strict local regulations, high operating effort, and seasonal income swings.

    🏢 Commercial & Industrial Properties

    • Multifamily Apartments (5+ units): Large apartment complexes.

      • Pros: Valued by income performance (Net Operating Income) rather than neighborhood comps.

      • Cons: High capital requirement and complex professional management needed.

    • Retail, Office & Industrial: Warehouses, storefronts, and office parks.

      • Pros: Longer lease terms (often 3 to 10 years) with triple-net (NNN) lease options.

      • Cons: Vulnerable to broader economic cycles and long vacancy recovery periods.

    📈 Passive & Alternative Real Estate

    • REITs (Real Estate Investment Trusts): Publicly traded company shares of real estate portfolios.

      • Pros: High liquidity, low starting cost, fully passive.

      • Cons: No physical leverage or direct operational tax write-offs.

    • Fix-and-Flip: Buying distressed homes to renovate and resell quickly.

      • Pros: Fast capital return if successful.

      • Cons: High risk from unexpected renovation costs and market shifts.

    What you should know:

    • What is your budget range for a down payment?

    • Do you want a hands-on or fully passive investment?

    Researching will help you choose the best property category for your goals.

Mortgage Automated Questions

  • Mortgage Automated makes getting a mortgage quote simple, transparent, and personal. Instead of answering endless questions before seeing your options, you receive a personalized mortgage quote upfront. If you'd like to move forward, you can request a Soft Credit Check and receive a detailed Loan Estimate without the pressure of a sales pitch.

    Unlike many online mortgage websites, Mortgage Automated is powered by experienced mortgage professionals—not chatbots. Every application is reviewed by a dedicated team member who guides you through the process from start to finish.

    Here's how it works

    1. Get your personalized mortgage quote.

    2. Request a Soft Credit Check if you'd like a more accurate estimate.

    3. Receive a personalized Loan Estimate.

    4. Decide whether you'd like to continue—there's no obligation.

    5. Work directly with your dedicated loan team through closing.

    No gimmicks. No endless phone calls. No pressure. Just the answers you're looking for.

    → Get My Mortgage Quote

  • Yes. Getting a mortgage quote from Mortgage Automated is completely free. There is no cost to receive an initial quote, and requesting a Soft Credit Check will not affect your credit score.

    If you decide to move forward with your loan application, some third-party services—such as an appraisal—may involve fees later in the mortgage process. You'll always receive a Loan Estimate outlining any potential costs before moving forward.

    → Get My Free Mortgage Quote

  • No. Getting a mortgage quote through Mortgage Automated does not affect your credit score.

    Our Rate Finder and Soft Credit Check allow you to receive personalized mortgage options without a hard credit inquiry.

    If you later choose to complete a full mortgage application, your lender may perform a hard credit inquiry as part of the underwriting process. While a hard inquiry may temporarily lower your credit score by a few points, multiple mortgage inquiries made within a short shopping period are generally treated as a single inquiry by most credit scoring models.

    → Check My Mortgage Rate

  • During normal business hours (Monday through Friday, 8:00 AM–5:00 PM Pacific Time), Mortgage Automated typically provides a personalized Loan Estimate within one hour after you submit your Soft Credit Check request.

    Response times outside of business hours may vary, but your request will be reviewed as soon as possible by a member of our mortgage team.

    → Get My Mortgage Quote

  • Yes. Protecting your personal information is one of Mortgage Automated's highest priorities. Your financial information is securely transmitted using encrypted systems designed specifically for the mortgage industry.

    We do not sell or share your personal information with third parties for marketing purposes. Your information is used only to process your mortgage application and provide the loan services you request.

    Your information is protected through:

    • Encrypted document and communication systems.

    • Secure mortgage loan origination software.

    • Federal privacy laws that govern the mortgage industry.

    • Restricted access to your personal information.

    Some mortgage documents, such as your recorded deed of trust or mortgage, become part of the public record after closing as required by law.

    → Learn More About Our Process

  • Only one.

    Unlike online lending marketplaces that distribute your information to multiple lenders, Mortgage Automated works with a dedicated lending partner. Your information is reviewed only by the lender handling your loan—not sold to competing lenders.

    That means:

    • No flood of unwanted phone calls.

    • No competing sales pitches.

    • One dedicated loan team from application through closing.

    → Start My Application

  • Absolutely. Comparing mortgage offers is one of the best ways to find the loan that fits your financial goals.

    When comparing offers, look at:

    • Interest rate

    • APR

    • Closing costs

    • Monthly payment

    • Loan term

    • Lender fees

    Mortgage Automated encourages borrowers to compare options so they can make an informed decision.

    → Compare Mortgage Options, if you choose another lender, not the Mortgage Automated dedicated lender, please send us the locked loan estimate. Our mortgage partner will compete for your business. Our mortgage partner ONLY accept LOCKED Loan Estimates

  • After you submit your application, you'll receive a confirmation that we've received your information. From there, your application is reviewed by a dedicated mortgage professional—not a chatbot.

    What happens next?

    1. Your application is securely received.

    2. A processor reviews your information for completeness.

    3. Your dedicated loan team contacts you if additional documents are needed.

    4. Your loan moves through processing and underwriting.

    5. Once approved, you'll receive a Clear to Close and schedule your closing.

    Throughout the process, you'll work with the same dedicated team to help answer your questions and keep your loan moving forward.

    → Start My Application

  • No. Receiving a mortgage quote or Loan Estimate does not obligate you to choose a loan through Mortgage Automated.

    You're free to:

    • Compare other lenders.

    • Ask questions.

    • Explore different loan options.

    • Decide not to move forward.

    You'll never be committed until you choose to proceed and sign your final loan documents at closing.

    → Get My Free Mortgage Quote

  • Yes. Mortgage Automated can help homeowners refinance their existing mortgage, whether you're looking to lower your interest rate, reduce your monthly payment, shorten your loan term, remove Private Mortgage Insurance (PMI), or access your home's equity through a Cash-Out Refinance.

    Our team will review your current mortgage and help determine whether refinancing makes financial sense based on your goals.

    Refinancing may help you:

    • Lower your monthly payment.

    • Reduce your interest rate.

    • Switch to a shorter loan term.

    • Remove PMI.

    • Access home equity with a Cash-Out Refinance.

    → Explore Refinance Options

Date of Last Revision: August 8, 2026