Mortgage Basics
Principal, interest, taxes, insurance — and how a 30-year amortization actually works.
What a mortgage is
A mortgage is a secured loan where the home itself is collateral. You repay principal plus interest over a fixed term — usually 15, 20, or 30 years. The lender holds a lien until the balance is satisfied.
PITI
Your monthly payment has four parts: Principal, Interest, Taxes, and Insurance. Most lenders escrow taxes and insurance so they're paid on your behalf. Add HOA dues when applicable.
Fixed vs adjustable
A fixed-rate mortgage locks your rate for the full term. An ARM starts lower but adjusts on a schedule (5/6, 7/6, 10/6). Fixed is the default for most buyers; ARMs make sense only when the time horizon is short.
Ready to see your numbers?
Run a preliminary scenario in the borrower portal. A licensed loan officer reviews every file before any commitment is issued.
All scenarios are preliminary and subject to borrower qualification, credit review, income verification, property approval, program guidelines, lender overlays, and licensed loan officer review.