Independent, clearly explained guides to US personal finance
The Home Finance Desk
Home financing terms explained, before you're sitting across from a loan officer.
The essentials
A mortgage is a long-term loan secured by the home itself, which is part of why the terms — rate type, points, term length — carry more weight than with most other loans. Getting the structure right matters as much as the headline rate.
This section covers what mortgage points actually buy you, and how fixed-rate and adjustable-rate mortgages compare depending on how long you plan to stay in the home.
Mortgages guides
In-depth explainers from our editors, newest first.
From down payments and PMI to fixed vs. adjustable rates and closing costs — everything that shapes your mortgage payment, explained clearly.
TheMoneyCraze Editors
Quick answers
The questions readers ask us most about mortgages.
Points are an upfront fee paid to lower your mortgage's interest rate — typically 1% of the loan amount per point. Whether they're worth it generally depends on how long you plan to keep the loan; the longer you stay, the more likely the upfront cost pays off.
Neither is universally better — a fixed rate stays the same for the life of the loan, offering predictability, while an adjustable rate often starts lower but can change after an initial period. The right choice tends to depend on how long you expect to stay in the home.
Pre-qualification is a rough, informal estimate based on self-reported information. Pre-approval is a more formal process involving documentation and a credit check, and generally carries more weight when making an offer on a home.
Related desks
A closer look at a few connected topics.