Mortgage Basics
Understand the essentials before you apply.
Start With the Terms That Shape Your Mortgage
A few essential concepts can make loan estimates, monthly payments, and closing costs easier to understand.
Use this page as a starting point—not a substitute for a personalized loan review. Your available programs, required funds, documentation, rate, payment, and costs will depend on your financial profile, property, and transaction.
View the Loan ProcessYour mortgage payment may include more than principal and interest.
- Principal and interest
- Property taxes and homeowners insurance
- Mortgage insurance, when applicable
- Other property expenses, such as HOA dues
Taxes, insurance, association dues, and other housing expenses can change even when a loan has a fixed interest rate.
What to Understand Before You Apply
These concepts affect how a mortgage is evaluated, priced, and presented in your loan disclosures.
Credit and Qualification
Credit history and scores can affect eligibility and pricing, but they are only part of the review. Income, assets, debts, loan program, and property details may also influence the decision.
Upfront Funds
The down payment is separate from closing costs. Your estimated Cash to Close may also reflect prepaid expenses, initial escrow deposits, credits, and money already paid.
Monthly Payment
Look beyond principal and interest. Property taxes, homeowners insurance, mortgage insurance, association dues, and maintenance can affect the amount needed each month.
Rate, APR, and Loan Term
The interest rate helps determine interest charges. APR is a broader comparison measure that includes the rate and certain loan costs. The term is the scheduled time for repaying the loan.
Appraisal and Property Review
An appraisal provides an independent opinion of value for the lending decision. It is not a home inspection or a guarantee of the property’s condition or future value.
Mortgage Insurance
Mortgage insurance may be required depending on the loan program, down payment, or available equity. It generally protects the lender, while its cost and cancellation rules vary by loan type.
Choose the Resource That Matches Your Next Question
Move from general concepts to the process, programs, payment structures, or planning tools you need.
Loan Process
See what generally happens from preparation and application through underwriting and closing.
View the ProcessLoan Programs
Explore mortgage programs designed for different borrower, property, and financing needs.
Explore ProgramsRate and Payment Options
Compare fixed, adjustable, and other ways a mortgage payment may be structured.
Compare OptionsMortgage Calculators
Use planning tools to explore hypothetical payments and financing scenarios.
View CalculatorsThis inquiry is not a loan application or loan approval and does not authorize a credit check.