What is a mortgage?
A mortgage is a loan from a lender to buy a home, secured by the property itself. You repay it over a fixed period, typically 15 to 30 years, with monthly payments of principal and interest.
How much should I put down on a house?
A typical down payment is 20% of the home price, which helps you avoid private mortgage insurance. However, lenders accept as little as 3-10% depending on your credit and loan type.
What does an amortization schedule mean?
An amortization schedule shows the breakdown of each monthly payment into principal and interest, plus your remaining loan balance. It helps you understand how your payment reduces the debt over time.
Does a mortgage payment include taxes and insurance?
No. A mortgage payment covers only principal and interest. Property taxes, homeowners insurance, and HOA fees are separate costs added to your total housing expense.
What interest rate should I expect on a mortgage?
Mortgage interest rates vary by market conditions, credit score, and loan type. Rates typically range from 4% to 7%, but you should check current rates with lenders for accurate pricing.