Editorial team
Mortgage Advice Daily Editorial Team
The editorial team researches each question against official sources such as the CFPB, HUD, FHFA, Fannie Mae and Freddie Mac, and updates answers when the rules change.
Mortgage Advice Daily is written and checked by its editorial team. We are not a lender or a broker, and we do not take referral fees from lenders. Every answer starts from primary sources: federal regulators (CFPB, HUD, FHFA, VA, USDA), the published guides of Fannie Mae and Freddie Mac, and state housing finance agencies. Each article shows when it was last updated and reviewed, and lists the sources we used with the date we checked them. When we get something wrong, we fix it and say so on the page.
Our standards
We follow a written editorial policy and methodology. We correct mistakes in the open.
Answers by the editorial team
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Question No. 012: Cash-out refinance or HELOC: which is better for tapping equity?
A HELOC is often the better fit if your current mortgage rate is low, because it leaves that loan alone and lets you borrow only what you need. A cash-out refinance can make more sense…
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Question No. 011: When does it make sense to refinance my mortgage?
Refinance when you will keep the new loan longer than your break-even point, the month when your savings have repaid the closing costs. Freddie Mac says refinancing costs about 3% to 6%…
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Question No. 010: What happens at closing when you buy a house?
At closing, you sign the final loan and ownership papers, pay your cash to close, and the settlement agent pays the seller and records the documents with the county. Once everything is…
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Question No. 009: How much are closing costs when you buy a house?
Plan for closing costs of about 2% to 5% of your loan amount, according to Freddie Mac. On a $360,000 loan, that is roughly $7,200 to $18,000, on top of your down payment. The exact…
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Question No. 008: How does first-time homebuyer down payment assistance work?
Down payment assistance (DPA) is help from state, county and city housing agencies and nonprofits that covers part of your down payment or closing costs. It usually comes as a grant, a…
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Question No. 007: Should I buy mortgage points to lower my interest rate?
Buy mortgage points only if you expect to keep the loan longer than your break-even point, the month when your monthly savings have repaid the upfront cost. One point costs 1% of the…
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Question No. 006: When can I remove PMI from my mortgage?
On most conventional loans, you can ask your servicer in writing to cancel PMI once your balance is scheduled to reach, or you pay it down to, 80% of your home's original value. It must…
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Question No. 005: Prequalification vs preapproval: what's the difference?
A prequalification is usually a quick estimate based on what you tell a lender. A preapproval usually means the lender has checked your credit and verified income and assets. Neither is…
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Question No. 004: Can I buy a house with a 620 credit score?
Yes. A 620 credit score clears FHA's 580 bar for 3.5% down, and many lenders will consider you for conventional and VA loans too. The catch is cost: at 620 you will usually pay a higher…
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Question No. 003: FHA or conventional loan: which is better for a first-time buyer?
FHA is usually easier to qualify for if your credit score is lower or your debts are higher, and it needs just 3.5% down with a 580 score. Conventional often costs less over time for…
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Question No. 002: How much down payment do I need to buy a house?
You do not need 20% down. VA loans can require no down payment for eligible service members and veterans. Some conventional loans allow 3% down, and FHA loans allow 3.5% down with a…
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Question No. 001: How much house can I afford on my income?
Start with the monthly payment you can live with, not the price. Many buyers keep the full house payment (loan, taxes, insurance, mortgage insurance) near 28% of gross monthly income…