Question 1

What is the difference between Interest Rate and APR?

Accepted Answer

The interest rate is the cost of borrowing the principal amount. The Annual Percentage Rate (APR) includes the interest rate plus other fees like broker fees, points, and some closing costs. APR is the better metric for comparing the true cost of different loan offers.

Question 2

When is Private Mortgage Insurance (PMI) required?

Accepted Answer

PMI is usually required on conventional loans if your down payment is less than 20% of the home's value. It protects the lender if you default. You can typically request to cancel PMI once your equity reaches 20%.

Question 3

What is Loan-to-Value (LTV) and why does it matter?

Accepted Answer

LTV is the ratio of your loan amount to the appraised value of the property. A higher LTV (e.g., 97%) means you have less equity and are a higher risk to the lender, often resulting in higher rates or required PMI.

Question 4

What are Mortgage Discount Points?

Accepted Answer

Points are optional fees paid directly to the lender at closing in exchange for a lower interest rate (also called 'buying down the rate'). One point usually costs 1% of the loan amount and lowers the rate by about 0.25%.

Question 5

Appraisal vs. Home Inspection: What's the difference?

Accepted Answer

An appraisal estimates the market value of the home for the lender. A home inspection assesses the physical condition of the property for the buyer. Both are critical steps in the US home-buying process.

Question 6

Should I lock my mortgage interest rate?

Accepted Answer

A rate lock guarantees your interest rate for a specific period (usually 30-60 days) while your loan is being processed. This protects you from market fluctuations before closing.

Question 7

Conventional vs. FHA vs. VA Loans: Which should I choose?

Accepted Answer

Conventional loans are best for those with good credit and 3%+ down. FHA loans are ideal for lower credit scores and 3.5% down. VA loans are for veterans and typically require 0% down with no PMI.

Loan Amount	5 yr	10 yr	15 yr	20 yr	25 yr	30 yr
$50K	~ $978/ mo	~ $568/ mo	~ $436/ mo	~ $373/ mo	~ $338/ mo	~ $316/ mo
$100K	~ $1.96K/ mo	~ $1.14K/ mo	~ $871/ mo	~ $746/ mo	~ $675/ mo	~ $632/ mo
$200K	~ $3.91K/ mo	~ $2.27K/ mo	~ $1.74K/ mo	~ $1.49K/ mo	~ $1.35K/ mo	~ $1.26K/ mo
$300K	~ $5.87K/ mo	~ $3.41K/ mo	~ $2.61K/ mo	~ $2.24K/ mo	~ $2.03K/ mo	~ $1.9K/ mo
$400K	~ $7.83K/ mo	~ $4.54K/ mo	~ $3.48K/ mo	~ $2.98K/ mo	~ $2.7K/ mo	~ $2.53K/ mo
$500K	~ $9.78K/ mo	~ $5.68K/ mo	~ $4.36K/ mo	~ $3.73K/ mo	~ $3.38K/ mo	~ $3.16K/ mo
$750K	~ $14.7K/ mo	~ $8.52K/ mo	~ $6.53K/ mo	~ $5.59K/ mo	~ $5.06K/ mo	~ $4.74K/ mo
$1M	~ $19.6K/ mo	~ $11.4K/ mo	~ $8.71K/ mo	~ $7.46K/ mo	~ $6.75K/ mo	~ $6.32K/ mo

Lender	Intro Rate	Standard Rate (Est.)	Term	Notes
Rocket MortgageBest Intro Rate	6.08%	6.50%	8 - 30 years	Fully online application process with highly customizable terms.	Calculate
Citi	6.11%	6.55%	15 - 30 years	Relationship pricing discounts available for existing banking customers.	Calculate
Bank of America	6.18%	6.45%	10 - 30 years	Specializes in first-time home buyer programs with low down payments.	Calculate
U.S. Bank	6.21%	6.65%	10 - 30 years	Offers great combination of low rates and digital mortgage experience.	Calculate
Chase Bank	6.23%	6.50%	15 - 30 years	Competitive fixed rates for 30-year mortgages.	Calculate
Wells Fargo	6.25%	6.60%	15 - 30 years	Strong presence in mortgage lending across all states.	Calculate

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