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📊 Financing

Smart financing for smart buyers.

Mortgage types, rate strategy, escrow, points — the financing playbook for buyers who'd rather understand than just sign.

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Most buyers spend more time choosing a paint color than choosing a mortgage. Wrong order. The 30 minutes you spend understanding rate locks, points, and lender comparison can save you tens of thousands over the life of the loan.

Mortgage types in plain English

Conventional (most flexible), FHA (lowest down payment), VA (zero-down for veterans), USDA (zero-down rural), Jumbo (over conforming limit). Each has trade-offs around rate, PMI, and qualification standards.

Rate strategy that actually moves the needle

Locking too early means missing rate drops. Locking too late means missing rate spikes. Compare at least three lenders — the difference between a top and middle quote is often 0.25–0.5% which is real money over 30 years.

Points, escrow, PMI — what's worth paying for

Points buy down rate. Escrow bundles taxes and insurance into your payment. PMI gets dropped at 22% equity automatically. Each has a clear breakeven — know yours before you sign.

Featured guides

How to compare mortgage lenders effectively →How to decide if mortgage points are worth buying →How to choose between a 15- and 30-year mortgage →Understanding mortgage rates →

Common questions

How much mortgage can I qualify for?
Lenders use debt-to-income (DTI). Most cap front-end (housing) DTI at 28% and back-end (all debt) at 36–43% depending on loan type. Pre-approval gives you the real number for your situation.
What's the difference between fixed and adjustable rate?
Fixed rates stay the same for the entire loan term — budget certainty. Adjustable rates (ARMs) start lower then reset periodically based on an index — lower upfront, higher long-term risk. Most buyers should pick fixed unless they're certain they'll move within the initial fixed period.
What is PMI and how do I avoid it?
PMI (Private Mortgage Insurance) is required when you put down less than 20% on a conventional loan. It typically costs 0.5–1% of the loan amount annually. Drops automatically at 22% equity. You can avoid it with 20% down or with a piggyback loan structure.
Should I buy mortgage points?
Each point typically costs 1% of the loan and reduces the rate by 0.25%. Calculate your breakeven — if you'll keep the loan past it, points pay off. If not, skip them and put the money toward the down payment instead.
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