Master Your Mortgage
A mortgage is likely the biggest debt you'll ever take on. Don't sign the papers until you understand exactly what you're getting into. We believe in homeownership, but we believe in smart homeownership even more. Buy that new home, but arm yourself with the knowledge to beat the bank at their own game.
How a Mortgage Works
Understanding the basics of amortization, interest, and principal so you don't get fleeced.
Mortgage Calculator
Run the numbers. See how extra payments can save you tens of thousands in interest.
Affordability Calculator
Determine your real budget based on income and debts, not just what the bank qualifies you for.
How to Refinance
Learn when it makes sense to swap your loan for a new one and how to calculate the break-even point.
Key Mortgage Terms
APR (Annual Percentage Rate)
The true cost of borrowing, including the interest rate plus points, broker fees, and other charges. Always compare APRs, not just interest rates.
Amortization
The schedule of payments that pays off a loan. Early payments are mostly interest; later payments are mostly principal.
PMI (Private Mortgage Insurance)
A fee charged to borrowers who put down less than 20%. It protects the lender, not you. Avoid it if possible.
Escrow
A neutral account held by a third party (or the bank) to pay property taxes and insurance premiums on your behalf.
Fixed-Rate vs. ARM
Fixed-rate mortgages have the same rate for the life of the loan. ARMs (Adjustable Rate Mortgages) fluctuate and can be risky if rates rise.
Equity
The difference between what your home is worth and what you owe. This is the portion of the house you actually own.