Banking guide

Mortgage basics

A mortgage is a secured loan used to buy or refinance real estate. Monthly housing cost can include principal, interest, taxes, insurance and association dues.

Down payment

A larger down payment can reduce loan-to-value ratio and may affect pricing, approval and mortgage insurance requirements.

Escrow

Escrow accounts collect funds for taxes and insurance. Escrow changes can change monthly payments even when principal and interest remain stable.

Rate locks

A rate lock may protect an offered rate for a limited period, subject to product terms and closing deadlines.

Closing documents

Borrowers typically review disclosures, settlement figures, title documents and final loan terms before closing.

This article is general information and does not replace account disclosures, loan agreements or personalized advice from a financial institution.