Mortgage FAQs

Usually not. The CFPB says condo, co-op, and homeowners’ association dues are typically paid straight to the association…

The Servicemembers Civil Relief Act provides certain foreclosure and rate protections for some mortgages taken out before active…

Generally only if you want that income counted as part of the credit application. The CFPB says a…

Generally no. The CFPB says a creditor cannot use age to make credit decisions, with limited exceptions. A…

A lender or broker may not treat applicants differently because of sex or marital status. The CFPB says…

A lender or broker cannot refuse a mortgage because the income comes from a public-assistance program. The CFPB…

No. The CFPB says a lender or mortgage broker cannot require documents such as a W-2 as a…

No. A seller may not require you to buy title insurance from a particular company as a condition…

Possibly. The CFPB says a servicer can charge a late fee if it receives the payment after the…

You can appeal only a loan-modification denial, not every foreclosure-avoidance decision. The CFPB describes an appeal when you…

A prepayment penalty is possible; it depends on the loan type and the written terms. Some loans charge…

A foreclosure does not permanently bar you from buying another home, but it will damage your credit. The…

Yes. The CFPB says you can negotiate terms and costs until you sign. The lender or seller can…

Some mortgage costs can increase between the Loan Estimate and closing, and some cannot. The CFPB groups closing…

If you are in default and the servicer has said the entire balance is due, the CFPB says…

CFPB rules do not forbid a servicer from sending monthly mortgage statements during bankruptcy. Servicers are not required…

Yes. Two unmarried people can apply together for a mortgage or home-equity loan. The CFPB says a lender…

Yes. The CFPB says you have a right to a free copy of the home appraisal on a…

No. The CFPB says you do not have to sign unless you are satisfied with the terms. Errors…

No. The CFPB says skipping payments can damage a credit score and narrow later options. Advice to stop…

No. The CFPB says you do not need a signed purchase contract to apply for a mortgage and…

Yes. The CFPB says taking out a home equity line of credit (HELOC) can affect a later refinance…

Not necessarily. The CFPB says that if you already have title, its rules do not require the lender…

Many servicers must try to contact you and tell you about loss-mitigation options after you miss payments. That…

Generally no, if you apply in your own name and qualify for the amount and terms you requested…

Closing costs are not calculated from a single national formula. Fannie Mae says they depend on the lender…

Fannie Mae describes the mortgage interest rate as the annual cost of borrowing for the home. Offers differ…

You can check whether a company or person is authorized to make or broker mortgage loans through the…

Current conforming loan limits are published by the Federal Housing Finance Agency and vary by county and property…

Current FHA loan limits are published by HUD and vary by county and by the number of units…

Treat unusually low or 'fixed' advertised rates and very low payments as signals to read the full terms…

Affordability depends on your budget, not only on how much a lender says you qualify to borrow. Budget…

You can ask your servicer, check the Closing Disclosure or Truth-in-Lending disclosure you received, or read the promissory…

Ask your servicer, use an online lookup, or send a written request. The CFPB says the servicer must…

State property records show whether the mortgage lien was released after payoff. The CFPB says you can check…

Compare written Loan Estimates from several lenders, not only advertised rates. Look at the interest rate, APR, loan…

You can call or write your mortgage servicer to dispute an error or request information. A letter sent…

You have more than one credit score. Fannie Mae says scores are built from the three nationwide bureau…

Contact the mortgage servicer to request account information about an inherited home. The CFPB says the company may…

Discount points reduce the interest rate if you pay more cash at closing. Lender credits reduce money due…

For most mortgages, lenders calculate the principal-and-interest payment from the loan amount, term, and interest rate using a…

A mortgage loan officer or broker is usually paid a loan-specific fee or commission by you or by…

Foreclosure is the process a lender uses to collect the debt from the home after missed mortgage payments…

Your credit score and credit-report information affect whether you can get a mortgage and the rate you are…

The down payment you need depends on the loan type and the lender's requirements. A larger down payment…

Each monthly payment splits between principal (the balance you borrowed) and interest (the charge for borrowing). Principal payments…

Debt-to-income ratio is total monthly debt payments divided by gross monthly income, then multiplied by 100. Monthly debt…

Before a Loan Estimate, the only fee a lender can require is a reasonable charge for a credit…

If you cannot pay, or are worried about a missed payment, contact your mortgage servicer right away and…

For a federally related mortgage under the Real Estate Settlement Procedures Act (RESPA), the CFPB says there is…

A late fee is a charge the mortgage documents allow when a payment is not made on time…

Mortgage loan modification scams try to take money by falsely promising to stop a foreclosure or obtain a…

Rate caps limit how much an adjustable-rate mortgage interest rate can move up or down. ARMs typically have…

On an adjustable-rate mortgage, the index is a market interest rate that moves with general conditions, and the…

File a dispute with the credit bureaus about the error. The CFPB also says you can submit a…

If you applied and did not get a Loan Estimate within three business days, ask the lender whether…

If you believe a lender or creditor treated you differently because of a protected characteristic, you can check…

If a disclosed HELOC term changes before the account opens, the CFPB says the creditor must refund the…

Ask the lender for a written explanation of the denial and for the credit-score information it used, when…

If a written notice of error or information request goes unanswered, the CFPB lists a complaint channel as…

First confirm you followed the servicer's payment instructions, then ask for an explanation by phone or in writing…

You do not have to sign if the loan at the table is not what you were promised…

If you have — or can obtain — a homeowners policy that meets the mortgage contract, send proof…

Taking out a mortgage involves upfront closing costs at or before closing and ongoing monthly costs. Upfront items…

Mortgage lenders typically review credit scores built from the three nationwide bureau files — Equifax, Experian, and TransUnion…

To apply, you give a lender facts about your finances and about the home you want to finance…

Before closing, federal rules generally require a Loan Estimate after you apply and a Closing Disclosure you must…

A revised Loan Estimate is an updated disclosure after something material about the loan or your application changed…

Expressing intent to proceed means you tell a particular lender you want that mortgage application to continue after…

HELOC fees are set out in the account documents; read those papers before you borrow. The CFPB lists…

After a complete loss-mitigation application, the servicer should usually evaluate it and send a written response when CFPB…

At a home-purchase mortgage closing, also called settlement, the parties sign the documents that finish the purchase and…

If the appraisal is lower than the sale price, the appraiser's opinion of value is below what you…

If the ownership of your loan is sold, the new owner must notify you within 30 days of…

A lender's credit check is reported as an inquiry and typically has a small negative effect on your…

A lender must give you a Loan Estimate after you provide six items: name, income, Social Security number…

A deed-in-lieu of foreclosure is a voluntary transfer of the home to the lender so a foreclosure sale…

A home appraisal is a written opinion of what a property is worth. Lenders often require one to…

A Loan Estimate is a standard three-page form you receive after applying for a mortgage. It shows the…

A rate lock means the offered interest rate will not change through closing if you close on time…

A mortgage repayment plan is an agreement to catch up missed payments by adding part of the past-due…

A no-closing-cost loan or refinance still has origination costs. The CFPB says lenders typically cover those costs by…

A Qualified Mortgage is a loan type that avoids certain high-risk features and is treated as satisfying the…

Arbitration is a private way to resolve a dispute without going to court. The CFPB says some protections…

Housing counseling is help from a counselor trained through the Department of Housing and Urban Development (HUD) to…

Closing costs are the fees and expenses of originating the mortgage, paid to the lender, settlement-service providers, and…

Lender's title insurance covers the lender if someone later asserts a legal claim against the home. The Consumer…

Mortgage forbearance is a temporary pause or reduction in payments arranged with your servicer. The CFPB says you…

Mortgage insurance protects the lender, not the borrower, if you fall behind and the home sale does not…

Owner's title insurance protects you if someone later claims an interest in the home from before you bought…

The ability-to-repay rule generally requires most lenders to make a reasonable, good-faith finding that you can repay a…

A fixed-rate mortgage has an interest rate that is set when you take out the loan and does…

A home equity loan is a lump-sum loan secured by your home equity. A HELOC is a revolving…

The interest rate is the yearly cost of borrowing, expressed as a percentage, and does not include fees…

A mortgage lender is a financial institution that makes or extends the mortgage loan. A mortgage broker does…

A mortgage lender originates or makes the loan. A mortgage servicer manages the loan after closing: it sends…

The principal-and-interest payment covers the amount you borrowed and the charge for borrowing it. The total monthly amount…

Prequalification and preapproval letters both say a lender is generally willing to lend up to a stated amount…

For most refinances and other loans not used to buy the home, federal law gives a cooling-off right…

A check by an existing creditor generally should not hurt a credit score. A new-lender inquiry can have…

You can ask the current owner about flood and other disaster risk before you make an offer. The…

Before closing, review the Closing Disclosure and the other key papers as soon as you receive them. During…

A disaster does not cancel the mortgage. The CFPB says to start with an insurance claim, tell the…

Contact your mortgage servicer as soon as an escrow or impound account looks wrong. The CFPB says you…

If you do not have a Closing Disclosure, ask the lender for it immediately. The CFPB says you…

If you spot an error in a closing document, contact the lender or settlement agent immediately so it…

Contact the mortgage servicer right away and send a written notice of error with a copy of the…

Ask your lender for a specific reason if the rate or fees on the Closing Disclosure differ from…

Look for posted notices, tell the sender you are a tenant, contact the landlord, and check state and…

A mortgage application can trigger competing 'prescreened' or 'preapproved' offers. The FTC says those mailers can be used…

Read how often the rate can change, which index and margin apply, and what caps or floors limit…

For many conventional mortgages on a single-family principal residence that closed on or after July 29, 1999, you…

By law, you must receive the Closing Disclosure at least three business days before closing. The form shows…

Start with the U.S. Department of Housing and Urban Development (HUD) nationwide list of agencies and a HUD-approved…

Down-payment funds often come from savings, from gifts that the loan program allows when they are properly documented…

Shop for the services listed in Section C on page 2 of your Loan Estimate. The lender must…

The homebuyer usually pays for the appraisal that a mortgage requires. Fannie Mae says the parties can instead…

The notice means an adjustable-rate mortgage is about to reset, and the servicer must send an estimate of…

Lenders often obtain more than one estimate of value, and those figures can differ. The CFPB says a…

A monthly payment can rise for several loan-specific reasons, including escrow changes for taxes or homeowners insurance, an…

Lenders generally require homeowners insurance, sometimes called hazard insurance, so the property that secures the loan is protected…

A different figure on the title company's paperwork does not necessarily mean you are being charged more. The…

A second appraisal can be required when you buy a recently resold home with a higher-priced mortgage loan…