Mortgage FAQ

A full estimate can include principal, interest, property taxes, homeowners insurance, mortgage insurance, and HOA dues. Utilities, maintenance, repairs, and many other ownership costs are usually separate.

No. A calculator is an educational estimate. Approval requires lender review of the borrower, property, documentation, program, and current terms.

Pre-qualification is often an early estimate based largely on stated information. Pre-approval generally involves a more meaningful review of credit and documentation, but remains conditional.

It depends on the loan program, borrower, property, occupancy, and lender. The lowest permitted down payment is not always the best financial choice.

Private mortgage insurance commonly applies to conventional financing with limited equity. Cost and cancellation rules depend on the transaction and policy.

The principal-and-interest portion stays fixed, but taxes, insurance, mortgage insurance, HOA dues, and escrow requirements can change.

APR is a disclosure measure that incorporates the interest rate and certain finance charges into an annualized comparison. It is not the same as the note rate or monthly payment.

Compare the upfront cost with monthly savings and expected time in the loan. A break-even analysis is more useful than assuming points are always good or bad.

Cash to close is the final amount the borrower must provide after accounting for down payment, costs, prepaids, deposits, credits, adjustments, and financing.

No. An appraisal supports collateral valuation and certain lender requirements. An inspection is a separate evaluation for the buyer.

Possible responses include renegotiation, additional cash, reconsideration with supported data, a different financing structure, or use of contract rights.

A job change can affect income stability and qualification. Discuss any potential change with the loan professional before acting.

Many programs permit qualifying gifts, but donor, transfer, documentation, and borrower-contribution rules can apply.

Underwriters may need to verify that funds are acceptable, belong to the borrower, and are not undisclosed debt or an ineligible source.

A lock protects specified mortgage pricing for a defined period under stated conditions. Extensions, changes, and expiration can affect cost.

Escrow commonly refers to the account used to collect and pay covered taxes and insurance, and can also refer to the settlement process depending on context.

It is the time needed for estimated monthly savings to recover upfront refinance cost. It does not capture every economic factor.

It can. A new 30-year loan creates a new 30-year schedule unless a shorter or custom term is selected.

No. Cash-out refinancing replaces the first mortgage. A home-equity loan or line generally adds another lien while leaving the first mortgage in place.

A longer amortization can lower principal-and-interest payment, but usually increases total interest and may not be widely available.

No. Some costs scale with price or loan amount, while others are flat, local, optional, or affected by timing.

Title insurance protects against covered title defects under the policy terms. Lender and owner policies protect different interests.

Debt-to-income ratio compares qualifying recurring monthly obligations with qualifying gross monthly income.

Loan-to-value ratio compares the loan amount with the property value used for the transaction.

Seller credits can pay eligible costs within program and contract limits. They generally cannot create unrestricted cash to the buyer.