Mortgages, buying and renting a home
How mortgages work, what buying a home really costs, and where to get free, independent housing advice.
For most people a home is the biggest purchase they will make, and the mortgage is the biggest debt. The details matter: the interest rate, whether it is fixed or adjustable, the length of the loan, and the fees that come with it. Small differences in rate or fees add up to a lot over many years.
Beyond the down payment, buyers pay closing costs, and owners pay for property taxes, homeowners insurance and upkeep. When you apply, lenders must give you a standard Loan Estimate, and before closing a Closing Disclosure, so you can compare offers on the same footing. Taking the time to compare several lenders is one of the most useful things a buyer can do.
If you are struggling with housing costs, you are not alone and you have options. HUD-approved housing counselors give free or low-cost advice on buying, renting, avoiding foreclosure and managing a mortgage.
Housing topics
How a mortgage works
Principal, interest, escrow, and what is in a monthly payment.
Fixed-rate versus adjustable-rate
The trade-offs, and what can change on an adjustable loan.
Down payments and loan types
Conventional, FHA, VA and USDA loans in plain English.
Closing costs
What you pay at closing and what you can negotiate.
Refinancing
When it can save money and when the costs outweigh the benefit.
Falling behind on your mortgage
What to do first, and the help that may be available.
Common questions
How much do I need for a down payment?
It depends on the loan. Some loan types allow low down payments, while a larger down payment can lower your monthly cost and may avoid mortgage insurance. Compare the total cost, not only the amount you need on day one.
What is a Loan Estimate?
It is a standard three-page form that lenders must give you within three business days of receiving your application. It sets out the loan terms, estimated monthly payment and closing costs, so you can compare offers side by side.
Where can I get free help with a mortgage problem?
HUD-approved housing counseling agencies provide free or low-cost advice. You can find one through HUD’s website. If you are behind on payments, contact your mortgage servicer early, as options are usually wider the sooner you ask.
Official sources and free help
- HUD: housing counseling(opens in a new tab)
Find a HUD-approved housing counselor near you.
- Consumer Financial Protection Bureau: owning a home(opens in a new tab)
Guides to mortgages, closing and what to do if you are behind on payments.
- Federal Trade Commission: mortgages(opens in a new tab)
How to avoid mortgage and foreclosure rescue scams.
This page provides general information only. It is not personalized financial, legal or tax advice, and rules and figures can change and can differ from state to state. Your situation is unique, so please check official sources such as the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC), and speak to a qualified mortgage or housing professional before making important decisions about your money.