Mortgage Basics Hub
Understanding your home loan is the key to financial stability. Our guides simplify the complex world of interest rates, escrow, and monthly payments.
How Do Mortgages Work?
A mortgage is a loan used to buy a home, typically repaid over 15-30 years. Your monthly payment (PITI) includes principal, interest, property taxes, and insurance. Early payments are mostly interest; over time, more goes toward principal. Down payments under 20% require PMI. Understanding these basics helps you budget accurately and choose the right loan.
Mortgage Calculator Guide
Learn how to accurately estimate your monthly payments including PITI and PMI.
Home Refinance Strategy
Calculate savings, break-even points, and learn when refinancing makes financial sense.
Monthly Payment Components
Go deeper into how your monthly payment is built, including principal, interest, and mortgage insurance.
Calculate Your Payment
Ready to see your monthly commitment? Use our calculator.
Launch Mortgage CalculatorThis article is for general informational purposes only and is not financial or legal advice.
Frequently Asked Questions
What does PITI stand for in mortgages?
PITI stands for Principal, Interest, Taxes, and Insurance. These are the four main components of a typical monthly mortgage payment. Principal reduces your loan balance, interest is the cost of borrowing, taxes are property taxes, and insurance is homeowners insurance.
What is a good credit score for a mortgage?
A credit score of 740 or higher typically qualifies you for the best mortgage rates. Scores of 620-739 can still get approved but may pay higher rates. FHA loans accept scores as low as 580 with a 3.5% down payment.
What is PMI and when is it required?
PMI (Private Mortgage Insurance) is required when your down payment is less than 20% on a conventional loan. It protects the lender if you default. PMI typically costs 0.5-1.5% of the loan amount annually and can be removed once you reach 20% equity.