Types of Mortgages
Fixed: A fixed term (for example, 15 or 30 years) as well as a fixed interest rate. The interest rate and term are fixed at the start of the mortgage. The monthly amount for the payment of principal and interest will not change during the term of the mortgage.
Adjustable: Often referred to as an ARM (Adjustable Rate Mortgage). The interest rate on your mortgage will be adjusted up or down according to current interest rate levels. The monthly amount for your principal and interest payment will go up or down with these rate changes. These mortgages may include "Interest Only" type of loans.
See more discussion on this subject on the Understanding Mortgages page.
How much down payment?
One of the first questions that home buyers ask is "how much down payment are we going to need?" Unfortunately, there is no standard answer. Down payments will vary from 0% (with a VA--Veteran's Administration loan or one of the newer 80/20 loan sets, where you actually take out two separate loans, known as ZERO Down Mortgages) to upwards of 25% (with certain "non-conforming" loans). As an average, most home buyers make down payments in the 5%-15% range, although your own personal situation may dictate more or less down payment. When you are budgeting money for a down payment, don't forget about closing costs, which will total in the 2-5% range, payable in cash at the time of closing.
What is Pre qualification? Does it mean that the loan is approved?
Pre qualification is the initial step in securing a mortgage. A lender will analyze your current income, debt and basic credit history situation in order to qualify you for a maximum loan amount. This gives you a clear picture of your financial parameters and a maximum housing price (the mortgage amount plus your down payment). With pre approval, the lender verifies your income, debt and financial picture, and credit score, approving the loan subject to a favorable appraisal of the property you select. See the discussion below on mortgage pre qualification vs mortgage pre approval for more information. Looking for a source for mortgage pre approval or mortgage refinancing? Apply Online Today For Low Rate Mortgage Home Financing!
Mortgage Pre Approval vs Pre Qualification
When it comes to mortgage refinancing, or applying for a new home purchase mortgage, being pre qualified for a mortgage loan is not the same as getting mortgage pre approval. For a true mortgage pre approval your application will be taken by a certified mortgage representative and submitted for approval with either Fannie Mae (DU) or Freddie Mac (LP). This will ensure your loan application will have a pre-approval and be saleable on the secondary market. Your loan needs to have either Fannie or Freddie approval to be purchased by conventional lenders. This gives you an additional advantage over other people offering to buy the home you want: Your Loan Is Already Approved!
Finding a Mortgage
We have found a simple way to compare mortgage sources and offers. You can apply online in minutes. There may be a simpler way of doing things, but we don't know what it is! Of course, you can also use our mortgage calculators!
Mortgage Glossary and Additional Information
If you want additional information on "Mortgage Speak", see our Mortgage Glossary for definitions of the most common Mortgage terms.
Credit Problems
There are options for those who have had credit problems and still want to own a home. See the All About Credit Section . | 
