Mortgage Basics – What Every Borrower Should Know
By Dream Team Lending
Thinking of buying a home? Whether you're a first-time buyer or seasoned investor, understanding how mortgages work is essential. At Dream Team Lending, we’re here to break it down clearly and simply.
🏠 What Is a Mortgage?
A mortgage is a loan that helps you buy a home. You borrow money from a lender (like us), and the property acts as collateral. If you stop making payments, the lender can take ownership of the property.
📊 Mortgage Types
- Conventional Loan: Best for borrowers with solid credit and down payment
- FHA Loan: Requires only 3.5% down, ideal for buyers with lower credit scores
- VA Loan: No down payment required, exclusively for veterans and military families
- Jumbo Loan: For high-value homes exceeding the conforming loan limits
- Fixed-Rate Mortgage: Same interest rate for the entire term
- Adjustable-Rate Mortgage (ARM): Starts low, but rate adjusts after a few years
💸 What Affects Your Mortgage Rate?
- Credit Score – Higher scores = better rates
- Down Payment – The more you put down, the less you pay monthly
- Loan Amount – Larger loans may have higher rates or stricter terms
- Debt-to-Income Ratio (DTI) – Lower is better
- Loan Term – Shorter terms often come with lower rates
📉 Mortgage Example
Loan Type: 30-year fixed
Loan Amount: $250,000
Down Payment: 10% ($25,000)
APR: 6.35%
Estimated Monthly Payment: ~$1,405 (excluding taxes & insurance)
📌 Final Thoughts
A mortgage is likely the biggest financial decision you’ll ever make—so understanding the basics is key. At Dream Team Lending, we take the time to explain every part of your loan so you feel confident and informed.
👉 Start your mortgage journey today: dreamteamlending.com/home-loans
📞 Call our mortgage team at 1-800-555-TEAM
With Dream Team Lending, your dream home is just a few steps away.