Fixed-rate mortgages have the same interest rate for the entire term of the loan, providing predictable monthly payments and stability against interest rate increases. Adjustable-rate mortgages (ARMs) start with a lower rate that may change periodically, depending on changes in a corresponding financial index that’s associated with the loan.

FHA loans are designed for low-to-moderate-income borrowers; they require a lower minimum down payment and lower credit scores than many conventional loans. To qualify, you’ll need a credit score of at least 580 to make a 3.5% down payment. If your credit score is between 500 and 579, you may still qualify for an FHA loan but will need to make a 10% down payment

Jumbo mortgages are used to finance properties that are too expensive for a conventional conforming loan. The requirements for a jumbo mortgage can vary by lender but generally include a higher credit score, larger down payment, and extensive documentation of income, assets, and debt levels.

Yes, self-employed individuals can qualify for a mortgage. You’ll need to provide additional documentation to prove your income stability. This typically includes two years of personal and business tax returns, and sometimes, a profit and loss statement.

Points, also known as discount points, are fees paid directly to the lender at closing in exchange for a reduced interest rate. This is also known as “buying down the rate,” which can lower your monthly mortgage payments. 

A reverse mortgage allows homeowners 62 years or older to convert part of their home equity into cash without having to sell their home or pay additional monthly bills. It’s important to understand the long-term financial implications of a reverse mortgage, including the effect on your estate and any inheritance you may wish to leave.

The minimum down payment for a conventional loan is typically 3% for first-time buyers. However, paying a larger down payment of 20% or more can help to reduce your monthly payments, and avoid paying private mortgage insurance (PMI).

To get pre-approved for a mortgage, you’ll need to provide income documentation such as pay stubs, tax returns, and W-2s, which help the lender assess your earnings and financial stability. The lender will also pull your credit report to evaluate your credit history and score. Based on this information, they can determine the purchase price you qualify for, giving you a clear idea of what homes you can afford.