Top 10 Most Googled Mortgage Questions (Answered Clearly!)

1. What is a mortgage?

A mortgage is a home loan that lets you buy property by borrowing money from a lender. You agree to repay it over time, usually in monthly payments spread over 15 to 30 years.

2. How much mortgage can I afford?

Most financial experts recommend that your mortgage payment (including taxes and insurance) should be no more than 28% of your gross monthly income. Use an online mortgage calculator or speak with a lender to get a personalized estimate.

3. What credit score do I need to buy a house?

The minimum credit score depends on the loan type:

• Conventional loans: 620+

• FHA loans: 580+

• VA/USDA loans: No set minimum, but higher scores are preferred

A higher score can help you secure better interest rates. Visit one of our previous blogs for more on how to maintain and protect your credit.

4. How much do I need for a down payment?

Down payments vary:

• Conventional loan: As low as 3%

• FHA loan: 3.5%

• VA/USDA loan: 0% (for qualified buyers)

You don’t need 20%—though putting more down may help you avoid extra fees like PMI.

5. What is PMI in a mortgage?

PMI (Private Mortgage Insurance) is typically required if your down payment is less than 20% on a conventional loan. It protects the lender, not the buyer, and adds a small cost to your monthly mortgage bill.

6. What are closing costs in a mortgage?

Closing costs are the fees you pay to finalize your mortgage. They include:

• Appraisal

• Title insurance

• Loan origination fees

• Prepaid taxes & insurance

These costs are usually 3–6% of the home’s purchase price.

7. Should I choose a 15-year or 30-year mortgage?

• 15-year loan: Higher payments, but you pay it off faster with less interest

• 30-year loan: Lower payments, but more interest over time

Pick the one that fits your monthly budget and financial goals.

8. What’s the difference between pre-qualification and pre-approval?

• Pre-qualification: A quick estimate based on your self-reported info

• Pre-approval: A more thorough process with credit and income checks

Pro tip: A pre-approval letter gives you more credibility when making an offer on a home.

9. Can I get a mortgage if I’m self-employed?

Yes! Self-employed borrowers usually need:

• 2 years of tax returns

• Profit & loss statements

• Consistent income history

Working with a loan officer familiar with self-employed clients can help a lot.

10. When is it smart to refinance?

Refinancing makes sense when:

• Interest rates have dropped

• You want to lower your payment or term

• You want to tap into home equity

Just make sure the potential savings outweigh the refinancing costs.

Ready to Take the Next Step?

If you still have questions, you’re not alone! Reach out to a trusted mortgage professional who can guide you through your options based on your unique situation.