How a mortgage decision works

A mortgage decision is a comparison of loan type, payment, and paperwork. MortgageDirectory.com walks through those pieces. Applying for the loan happens with a lender, not on this site.

1. Step 1

   Start with the job the loan has to do. A purchase loan buys the house. A refinance replaces a mortgage you already have. A home equity loan or line of credit usually sits on top of the first mortgage. A reverse mortgage is a later-life product with its own rules.

2. Step 2

   Use the calculator to see how the rate, the term, taxes, insurance, and mortgage insurance change a monthly payment. Then read the guide for the cost you are least sure about, such as closing costs or PMI.

3. Step 3

   When a lender takes an application, it must give you a Loan Estimate. Compare the rate, the APR, cash to close, and whether the rate can rise. MortgageDirectory.com does not pull that form for you and does not send your information to a lender.

Start with the guides or the mortgage calculator.

MortgageDirectory.com explains how home loans work. It is not a lender, broker, or quote service, and nothing here is personal financial, tax, or lending advice. Rates, fees, and approvals come from lenders and depend on your situation.