PMI is typically required when the down payment is less than 20% of the home's purchase price. It protects the lender in case the borrower defaults on the loan. Many mortgages allow for early repayment without penalties.

A fixed-rate mortgage has an interest rate that stays the same for the entire loan term, providing predictable monthly payments. An adjustable-rate mortgage (ARM) has a rate that starts fixed for a few years (e.g., 5 or 7 years) and then adjusts periodically based on market rates, which can make payments increase or decrease over time. Fixed rates are best for stability, while ARMs may offer lower initial rates but carry more payment uncertainty after the fixed period.

A conventional loan is not backed by the government and typically requires a higher credit score and down payment, though it offers more flexibility in property types. An FHA loan, insured by the Federal Housing Administration, has more lenient credit and down payment requirements, making it ideal for first-time buyers, but it includes mortgage insurance premiums (MIP) that increase the overall cost.

Yes, you can pay off your mortgage early, which can save you interest over time. However, some lenders charge prepayment penalties for paying off the loan ahead of schedule, especially within the first few years. Check your loan terms or ask your lender to see if penalties apply.

Yes, you can refinance your mortgage, provided you meet the lender's requirements. Refinancing is essentially replacing your current mortgage with a new one, which can have different terms, interest rates, or loan amounts. Refinancing might be a good idea in these situations: Interest Rate Drop, Improved Credit Score, Switching Loan Types, Shortening the Loan Term, or Accessing Home Equity.

A Debt Service Coverage Ratio (DSCR) loan is a type of mortgage primarily for real estate investors. It focuses on the property’s income potential rather than the borrower’s personal income. Lenders look at the DSCR, which is the ratio of the property's rental income to its debt obligations, to assess whether the property generates enough income to cover the mortgage. This loan can be easier to qualify for if the property cash flows well.