First-Time Home Buyer Mortgage Guide

Buying your first home is one of the biggest financial decisions you will make. Understanding mortgages helps you make an informed choice.

Types of Mortgages

Fixed-rate mortgages keep the same interest rate for the entire term, making payments predictable. Adjustable-rate mortgages (ARMs) start with a lower rate that changes after an initial period. For most first-time buyers, a fixed-rate mortgage is the safer choice.

How Much Can You Afford

The general rule is to keep housing costs below 28% of gross monthly income. This includes principal, interest, taxes, and insurance (PITI). Use our Mortgage Calculator to estimate your monthly payments at different price points.

Down Payment

Conventional loans typically require 5-20% down. FHA loans allow as little as 3.5%. A larger down payment means lower monthly payments and no private mortgage insurance (PMI) if you put 20% or more down.

Interest Rates

Even small rate differences matter over 30 years. A 0.5% rate difference on a $300,000 loan adds up to about $30,000 in extra interest over the life of the loan.

The Amortization Schedule

In early years, most of your payment goes to interest. Over time, more goes to principal. Use our Amortization Table to see exactly how each payment breaks down over the life of your loan.