Mortgage Basics

Learn the core concepts behind mortgages.

APR vs Interest Rate

APR vs Interest Rate is a key concept for mortgage borrowers. Learn how it works and how it affects your loan.

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How Mortgages Work

Learn how mortgages work from application to payoff. Understand principal, interest, amortization, and the process from application through closing.

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What Is a Mortgage

A mortgage is a loan secured by real property. Learn how mortgages work, key terms, types of loans, and the regulatory framework that protects U.S. borrowers.

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What is DTI

Debt-to-Income ratio compares monthly debt payments to gross income. Learn how lenders use it in underwriting.

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What is LTV

Loan-to-value compares your mortgage amount to the home's value. Learn how it affects underwriting and PMI.

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What Is Mortgage Principal

Principal is the amount you borrow. Learn how it differs from interest, how payments reduce it, and how extra principal payments work.

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What Is PITI

PITI stands for Principal, Interest, Taxes, and Insurance. Learn how it is calculated and how lenders use it to assess affordability.

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What is Amortization

How loan principal and interest are paid over time. Understand amortization schedules.

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What is a Loan Term

How long you have to repay. Learn about 15-year vs 30-year terms and how they affect your payment.

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What Is a Mortgage Lender

The lender funds your loan. Learn how lenders differ from brokers and servicers, and how to compare and choose one.

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What Is a Mortgage Broker

A broker connects borrowers with lenders. Learn how brokers work, how they are compensated, and when using one may make sense.

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What Is a Mortgage Payment

A mortgage payment typically includes principal, interest, taxes, and insurance (PITI). Learn how payments are calculated and what to expect.

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