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Mortgage Basics

Mortgages come with their own vocabulary and plenty of fine print. This hub demystifies the fundamentals — APR, property taxes and escrow, title, tax advantages, and the calculators that tie it all together — so you can make decisions from a place of understanding rather than guesswork.

All Mortgage Basics articles & guides

2 min read·Mortgage Basics

How Much of My Income Should Go Toward My Mortgage?

A common guideline is to keep your housing payment under 28% of your gross monthly income. On a $100,000 salary, that's about $2,333 a month. But the right number for you depends on your other debts, your lifestyle, and how much financial cushion you want.

2 min read·Mortgage Basics

What Actually Happens in Underwriting?

Underwriting is where a lender verifies everything in your application and decides whether to approve your loan. An underwriter reviews your income, assets, credit, and the property itself, then issues an approval, a denial, or (most commonly) an approval with conditions. It usually takes a few days to a couple of weeks.

2 min read·Mortgage Basics

What Credit Score Do You Need for Each Loan Type?

The minimum credit score depends entirely on the loan program: FHA goes as low as 500-580, VA and USDA have no federal minimum (lenders typically want 580-640), conventional generally starts around 620, and jumbo loans want 700 or higher. Here's the breakdown by program.

2 min read·Mortgage Basics

DTI: Why 28/36 Is a Guideline, Not Your Real Limit

The 28/36 rule is a budgeting guideline, not the limit that determines whether you qualify. Most conventional loans run through automated underwriting approve debt-to-income ratios up to 50%, and VA loans have no hard DTI cap at all.

2 min read·Mortgage Basics

What Is PMI and How Do I Get Rid of It?

Private mortgage insurance (PMI) is a monthly charge added to conventional loans when you put down less than 20%. On most conventional loans it cancels automatically once you reach 22% equity, and you can request removal at 20%.

2 min read·Mortgage Basics

What Credit Score Do I Need to Buy a House?

There is no single number. The minimum credit score depends on the loan type: FHA loans go as low as 580 (or 500 with 10% down), VA and USDA have no set federal minimum, and conventional loans generally start around 620.

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