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About Mortgages

Whatever your story, a mortgage is probably the biggest loan you’ll take out in your lifetime. Before you apply, you should understand what’s involved.

All home mortgage purchase loans have the same basic parts: the down payment, interest rate, and term of the loan. But loans can have different features and look different over the long term. Some of these features include:

  • Whether the loan has a fixed or an adjustable rate
  • Whether the loan has a baloon payment or a prepayment penalty
  • How long your interest rate and payments are fixed
  • Whether you have to pay Personal Mortgage Insurance (PMI)
  • (If you use a mortgage broker) How your mortgage broker is compensated

It's important to know all the terms and characteristics of your loan. This way you can be sure you can afford the payments over the life of the loan.

When you’re looking for a loan, make sure you :
  • Understand what your credit report says about you so you know how lenders will evaluate your application. Learn More
  • Shop for the best interest rates. Applying for multiple mortgage loans in a short period of time will not affect your credit. Credit bureaus and lenders understand the importance of shopping for a loan so they will count these multiple loan inquiries as one potential purchase if the inquiries are made within a 14-day period. Consider approaching multiple lenders or mortgage brokers when you shop around. Learn More
  • Make sure you understand how long the interest rate will stay the same. Is it fixed or adjustable/variable? Learn More
  • If you get an adjustable-rate loan, be sure you can afford the monthly payment when the loan is fully adjusted to the highest allowable interest rate. Learn More