What is a mortgage loan?
A mortgage loan is a type of loan used to purchase or refinance a home. The property serves as collateral, and the borrower makes monthly payments to repay the loan over a fixed period, typically 15 to 30 years.
How much down payment is required?
It depends on the loan type. Conventional loans typically require 5%–20%, while FHA loans may allow as little as 3.5%. Some programs offer zero-down-payment options for eligible borrowers.
What is mortgage refinancing?
Refinancing is the process of replacing your current mortgage with a new one, often to reduce the interest rate, change loan terms, or tap into home equity.
Can I refinance with bad credit?
Yes, but it may be harder to qualify for favorable rates. Government-backed options like FHA streamline refinance may help.
What is home equity?
Home equity is the difference between your home’s current market value and the amount you owe on your mortgage. As you pay down your loan or your home appreciates, your equity grows.
What is a Home Equity Loan?
A home equity loan lets you borrow a lump sum against your equity, with a fixed interest rate and set repayment schedule.
What is a Home Equity Line of Credit (HELOC)?
A HELOC is a revolving line of credit, similar to a credit card, that allows you to borrow against your home’s equity as needed during the draw period.