Buying a home is the largest financial decision most Americans make. Our mortgage and real estate tools help you analyze affordability, compare loan options, plan your down payment, and evaluate total homeownership costs before and after the purchase.
A common guideline is to keep total housing costs (PITI) below 28% of gross monthly income. On a $80,000 salary, that is $1,867/month. At 30-year, 7% rate, that supports roughly a $280,000 mortgage before taxes and insurance.
Mortgage rates change daily based on the Federal Reserve policy, 10-year Treasury yields, and lender competition. Historically, below 4% is excellent, 4–6% is normal, and above 7% is elevated. Your credit score, down payment, and loan type all affect the rate you qualify for.
From application to closing typically takes 30–60 days. Getting pre-approved (3–5 days) before house hunting shows sellers you are serious. Once under contract, the process includes appraisal, title search, final underwriting, and closing disclosure review.
Lenders require an escrow account for property taxes and insurance. Each month, a portion of your payment is deposited into escrow, and the lender pays taxes and insurance on your behalf when due. This spreads large annual bills into manageable monthly amounts.
Fixed-rate mortgages offer payment certainty for the loan term. ARMs start lower but can increase. If you plan to stay in the home beyond the ARM's initial fixed period (5, 7, or 10 years), a fixed rate is usually safer. If you plan to move sooner, an ARM might save money.