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Mortgages
Learn some of the basics about mortgages.
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Temporary Mortgage Relief Due to Coronavirus Pandemic
In response to the coronavirus pandemic, under the CARES Act, the owners of single-family homes with federally-backed mortgages can get two types of financial help.
Mortgage Refinancing
Refinancing your mortgage allows you to pay off your existing mortgage and take out a new mortgage on new terms. You may want to refinance your mortgage to take advantage of lower interest rates, to change your type of mortgage, or for other reasons.
These resources will help you learn more about refinancing your mortgage:
- A Consumer's Guide to Mortgage Refinancings is your first place to look for an introduction to mortgage refinancing, including useful worksheets, a glossary of terms used in the industry, and more to help you decide if mortgage refinancing is right for you.
- What type of mortgage should you choose? Get information about mortgage types and the settlement process in Buying Your Home: Settlement Costs Booklet (PDF, Download Adobe Reader).
- Veterans may be eligible for refinancing their VA mortgage using Interest Rate Reduction Refinancing Loans (IRRRL).
Predatory Loans
Mortgage professionals can help you buy or refinance your home. Most are trustworthy and provide a valuable service. But dishonest or "predatory" lenders do exist. They engage in practices that can put you at risk of losing your home to foreclosure. Learn how to protect yourself from and report predatory lending and loan fraud.
Reverse Mortgages
A reverse mortgage is a home loan that you do not have to pay back for as long as you live in your home. You only repay the loan when you die, sell your home, or permanently move away. Homeowners who are at least 62 years old are eligible. These mortgages allow older homeowners to convert part of the equity in their homes into cash without having to sell their homes or take on additional monthly bills.
Read more information about reverse mortgages.
FHA Loans and HUD Homes
If you’re a homebuyer, the Department of Housing and Urban Development (HUD) has two programs that may help make the process more affordable.
How to Get a Mortgage
A mortgage is a loan from a commercial bank, mortgage company, or other financial institution to purchase a home or other real estate. A lender will give a loan if you meet certain requirements such as a high enough credit score and income level and have the financial ability to pay it back. The lender can take, or foreclose on, the property you’ve mortgaged if you don’t repay the money borrowed, plus interest.
Getting a mortgage is one of the biggest financial decisions you may make in your life. This overview can help you understand the process.
Do you have a question?
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Last Updated: July 22, 2020