FAQ's

A mortgage is a loan provided by a financial institution to help individuals or couples purchase a home.

With a mortgage, the borrower receives funds from the lender to buy a property and agrees to repay the loan over a specified period, usually with interest.

A down payment is an upfront payment made by the homebuyer when purchasing a property. It is typically a percentage of the total purchase price and reduces the amount borrowed.

A fixed-rate mortgage has a consistent interest rate throughout the loan term, while an adjustable-rate mortgage (ARM) may have an initial fixed-rate period, followed by rate adjustments based on market conditions.

 Mortgage interest rates are influenced by various factors, including the borrower’s creditworthiness, loan term, loan type, current market conditions, and economic indicators.

 Pre-approval is a process where a lender evaluates a borrower’s financial information and creditworthiness to determine the maximum loan amount they can afford.

PMI is typically required for borrowers who make a down payment of less than 20% of the home’s purchase price. It protects the lender in case of default.

Yes, many mortgages allow borrowers to make additional payments or pay off the loan early. However, it’s essential to review the terms and any potential prepayment penalties.

A mortgage rate lock is an agreement between the borrower and lender that guarantees a specific interest rate for a certain period, typically until closing.

A mortgage origination fee is a fee charged by the lender for processing and underwriting the loan. It is usually a percentage of the loan amount.

Yes, refinancing allows borrowers to replace their current mortgage with a new one, often to take advantage of lower interest rates, reduce monthly payments, or shorten the loan term.

 An amortization schedule is a table that outlines the repayment plan for a mortgage, including the breakdown of principal and interest payments over the loan term.

The loan amount you can borrow depends on factors such as your income, credit score, debt-to-income ratio, down payment, and the lender’s criteria.