A mortgage is a loan that is used to buy a property, typically a home.

There is no difference between a mortgage and a home loan; they are the same thing.

The amount you can borrow depends on your income, credit score, and the property’s value.

A down payment is a percentage of the property’s price that you pay upfront, usually between 3-20%.

A fixed-rate mortgage is a loan where the interest rate remains the same throughout the loan term.

An adjustable-rate mortgage (ARM) is a loan where the interest rate can change over time based on market conditions.

The typical mortgage term is 30 years, but they can range from 10-40 years.

PMI is insurance that protects the lender if the borrower defaults on the loan. It is usually required if the down payment is less than 20%.

A pre-approval is a letter from a lender that indicates how much you are qualified to borrow based on your income, credit score, and other factors.

Pre-qualification is an estimate of how much you may be able to borrow based on basic financial information. Pre-approval is a more in-depth process that requires a credit check and income verification.

Closing costs are fees associated with closing a mortgage, including appraisal fees, title insurance, and attorney fees.

Points are fees paid upfront to lower the interest rate on a mortgage.

An amortization schedule is a table that shows how much of each mortgage payment goes towards principal and interest over time.

Refinancing is the process of replacing an existing mortgage with a new one, usually to get a lower interest rate or better terms.

Yes, you can pay off your mortgage early, but there may be prepayment penalties.

A home equity loan is a loan where you borrow against the equity in your home.

A HELOC is a line of credit where you can borrow against the equity in your home as needed.

A jumbo mortgage is a loan that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac.

A reverse mortgage is a loan where the lender pays you based on the equity in your home. It is usually only available to homeowners who are 62 years or older.