Mortgage Basics

Last reviewed: October 2026 · By the MortgageCompass Editorial Team · How we research A mortgage is a loan to buy a home, where the home itself is the security. You borrow most of the price from a lender, pay the rest as a deposit or down payment, and repay the loan with interest in

Last reviewed: October 2026 · By the MortgageCompass Editorial Team · How we research A fixed-rate mortgage keeps the same rate for the whole loan. An adjustable-rate mortgage (ARM) starts with a fixed rate for a few years, usually five, seven or ten, then adjusts with the market. In the week ending October 9, 2026,

Last reviewed: October 2026 · By the MortgageCompass Editorial Team · How we research You can buy a house in the US with a credit score as low as 500 using an FHA loan with 10% down, or 580 with 3.5% down. Most lenders want about 620 for conventional and VA loans, and USDA loans

Last reviewed: October 2026 · By the MortgageCompass Editorial Team · How we research Amortization is the way a mortgage is paid off through equal regular payments. Each payment covers the interest charged that month, and whatever is left reduces the balance. Because interest is calculated on the balance, early payments are mostly interest and

Last reviewed: October 16, 2026 · By the MortgageCompass Editorial Team · How we research Refinancing is worth it when the money you save, after closing costs, is greater than what you would pay by keeping your current loan over the years you expect to stay. With the average 30-year rate at 7.40% in mid-October

Last reviewed: October 2026 · By the MortgageCompass Editorial Team · How we research For most households, a comfortable home price is one where the mortgage, property tax and insurance take no more than about 28% of gross income, and all debts together no more than about 36%. On a household income of 100,000 with