{"id":2564,"date":"2024-08-23T06:00:37","date_gmt":"2024-08-23T13:00:37","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=2564"},"modified":"2026-03-23T06:21:38","modified_gmt":"2026-03-23T13:21:38","slug":"mortgages-101","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/mortgages-101\/","title":{"rendered":"Mortgage 101: A Crash Course for the First Time Home Buyer"},"content":{"rendered":"

DISCLAIMER: This article is meant for educational purposes only and is not intended to be construed as financial, tax, or legal advice. HomeLight always encourages you to reach out to an advisor regarding your own situation.<\/em><\/p>\n

The first time you buy a home<\/a>, you\u2019re going to take out a mortgage. There\u2019s usually no getting around it.<\/p>\n

Trouble is, mortgage loans come with a slew of complicated vocabulary and documents. There are a bunch of different types of mortgage loans, a massive number of different lenders, and more complications that can pop up along the way than most banks would care to admit.<\/p>\n

Mortgages are confusing, and there\u2019s a TON of money at stake.<\/p>\n

That\u2019s why we put together this list of 28 frequently asked questions for you: the newbie home buyer. This is the ultimate guide to Mortgage 101.<\/p>\n

\n\n\n\n\n

\n
\n
\n \"homelight\n <\/div>\n \n

Get a Guaranteed Cash Offer in 24 Hours<\/h3>\n

Sell your house fast with an all-cash offer through HomeLight’s Simple Sale network and close in as little as 7 days. No showings, no repairs, no open houses.<\/p>\n \n

\n Apply Now<\/a>\n <\/div>\n <\/div>\n<\/div>\n\n
<\/div><\/p>\n

What is a mortgage?<\/h2>\n

Unless you can pay for your house upfront in an all-cash offer, you\u2019ll take out a loan from the bank to pay off the house gradually. You\u2019ll pay off a little bit of the loan, plus interest, every month for either 15 or 30 years. The amount you pay every month is your mortgage<\/a>.<\/p>\n

<\/div>\n

What is the difference between paying rent and paying a mortgage?<\/h3>\n

If you have rented in the past, you might find that your mortgage and rental payments are about the same. In some cities, the amount of mortgage you pay might even be less than your rent would be.<\/p>\n

When you pay rent, the money goes right into your landlord\u2019s pocket. When you pay a mortgage, you work towards paying off the balance of your house, which means that when you sell, you get to keep any leftover cash<\/a> that doesn\u2019t go towards paying your real estate agent or paying off the balance of your loan.<\/p>\n

<\/div>\n

What is the promissory note?<\/h3>\n

The loan you take out from the bank comes with a contract to make sure that you pay off the entire balance over time. This contract is called the promissory note.<\/a><\/p>\n

<\/div>\n

When do mortgage payments start?<\/h3>\n

You start paying your mortgage one month after the last day of the month you closed the house. For example, if you closed on April 16th, you will start paying your mortgage one month after April 30th.<\/p>\n

<\/div>\n

What are mortgage interest rates?<\/h3>\n

Your interest rate<\/a> is the percent of interest you pay on your mortgage each month. You\u2019ll want to lock in the lowest rate possible. Some ways to try and lock in a great interest rate are:<\/p>\n

1. Negotiate.<\/strong><\/p>\n

You don\u2019t have to accept the first rate you\u2019re quoted. Practice your negotiation skills<\/a> and ask for exactly what you want.<\/p>\n

2. Work with a mortgage broker.<\/strong><\/p>\n

Mortgage brokers<\/a> are trained professionals and experts in getting you a great deal on your loan. They know what rates are good, when to push back, and when to keep looking. These brokers cost money to work with, but the deal they find you and the ease of working with the right one could be worth the end cost.<\/p>\n

3. Shop around.<\/strong><\/p>\n

Don\u2019t settle on the first rate you find. Make sure you look around to get the best interest rate out there.<\/p>\n","protected":false},"excerpt":{"rendered":"

Mortgages are confusing and there\u2019s a ton of money at stake. That\u2019s why we made this list of 28 FAQs for you. This is the ultimate guide to Mortgage 101.<\/p>\n","protected":false},"author":22,"featured_media":47418,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","cybocfi_hide_featured_image":"","footnotes":""},"categories":[343,322],"tags":[318],"class_list":["post-2564","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finances","category-logistics","tag-mortgages"],"acf":[],"yoast_head":"\nMortgage 101: A Crash Course for the First Time Home Buyer<\/title>\n<meta name=\"description\" content=\"Mortgages are confusing and there\u2019s a ton of money at stake. That\u2019s why we made this list of 28 FAQs for you. This is the ultimate guide to Mortgage 101.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.homelight.com\/blog\/mortgages-101\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mortgage 101: A Crash Course for the First Time Home Buyer\" \/>\n<meta property=\"og:description\" content=\"Mortgages are confusing and there\u2019s a ton of money at stake. That\u2019s why we made this list of 28 FAQs for you. This is the ultimate guide to Mortgage 101.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.homelight.com\/blog\/mortgages-101\/\" \/>\n<meta property=\"og:site_name\" content=\"HomeLight Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/gohomelight\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-08-23T13:00:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-23T13:21:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2017\/05\/mortgages-101-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"563\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Alexa Collins\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@gohomelight\" \/>\n<meta name=\"twitter:site\" content=\"@gohomelight\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Alexa Collins\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"12 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Mortgage 101: A Crash Course for the First Time Home Buyer","description":"Mortgages are confusing and there\u2019s a ton of money at stake. That\u2019s why we made this list of 28 FAQs for you. This is the ultimate guide to Mortgage 101.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.homelight.com\/blog\/mortgages-101\/","og_locale":"en_US","og_type":"article","og_title":"Mortgage 101: A Crash Course for the First Time Home Buyer","og_description":"Mortgages are confusing and there\u2019s a ton of money at stake. That\u2019s why we made this list of 28 FAQs for you. This is the ultimate guide to Mortgage 101.","og_url":"https:\/\/www.homelight.com\/blog\/mortgages-101\/","og_site_name":"HomeLight Blog","article_publisher":"https:\/\/www.facebook.com\/gohomelight\/","article_published_time":"2024-08-23T13:00:37+00:00","article_modified_time":"2026-03-23T13:21:38+00:00","og_image":[{"width":1000,"height":563,"url":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2017\/05\/mortgages-101-1.png","type":"image\/png"}],"author":"Alexa Collins","twitter_card":"summary_large_image","twitter_creator":"@gohomelight","twitter_site":"@gohomelight","twitter_misc":{"Written by":"Alexa Collins","Est. reading time":"12 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":["Article","BlogPosting"],"@id":"https:\/\/www.homelight.com\/blog\/mortgages-101\/#article","isPartOf":{"@id":"https:\/\/www.homelight.com\/blog\/mortgages-101\/"},"author":{"name":"Alexa Collins","@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/person\/19ca1f71cf094b315da27c8ee1093d52"},"headline":"Mortgage 101: A Crash Course for the First Time Home Buyer","datePublished":"2024-08-23T13:00:37+00:00","dateModified":"2026-03-23T13:21:38+00:00","mainEntityOfPage":{"@id":"https:\/\/www.homelight.com\/blog\/mortgages-101\/"},"wordCount":601,"publisher":{"@id":"https:\/\/www.homelight.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.homelight.com\/blog\/mortgages-101\/#primaryimage"},"thumbnailUrl":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2017\/05\/mortgages-101-1.png","keywords":["Mortgages"],"articleSection":["Finances & Tax Implications","Logistics"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.homelight.com\/blog\/mortgages-101\/","url":"https:\/\/www.homelight.com\/blog\/mortgages-101\/","name":"Mortgage 101: A Crash Course for the First Time Home Buyer","isPartOf":{"@id":"https:\/\/www.homelight.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.homelight.com\/blog\/mortgages-101\/#primaryimage"},"image":{"@id":"https:\/\/www.homelight.com\/blog\/mortgages-101\/#primaryimage"},"thumbnailUrl":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2017\/05\/mortgages-101-1.png","datePublished":"2024-08-23T13:00:37+00:00","dateModified":"2026-03-23T13:21:38+00:00","description":"Mortgages are confusing and there\u2019s a ton of money at stake. That\u2019s why we made this list of 28 FAQs for you. This is the ultimate guide to Mortgage 101.","breadcrumb":{"@id":"https:\/\/www.homelight.com\/blog\/mortgages-101\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.homelight.com\/blog\/mortgages-101\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.homelight.com\/blog\/mortgages-101\/#primaryimage","url":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2017\/05\/mortgages-101-1.png","contentUrl":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2017\/05\/mortgages-101-1.png","width":1000,"height":563,"caption":"Source: (rawpixel \/ Unsplash)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.homelight.com\/blog\/mortgages-101\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.homelight.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Mortgage 101: A Crash Course for the First Time Home Buyer"}]},{"@type":"WebSite","@id":"https:\/\/www.homelight.com\/blog\/#website","url":"https:\/\/www.homelight.com\/blog\/","name":"HomeLight Blog","description":"Real Estate Advice from America's Top Agents","publisher":{"@id":"https:\/\/www.homelight.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.homelight.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.homelight.com\/blog\/#organization","name":"HomeLight","url":"https:\/\/www.homelight.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2017\/11\/logo-hr-color.png","contentUrl":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2017\/11\/logo-hr-color.png","width":1348,"height":262,"caption":"HomeLight"},"image":{"@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/gohomelight\/","https:\/\/x.com\/gohomelight","https:\/\/www.linkedin.com\/company\/homelight\/","https:\/\/www.youtube.com\/channel\/UCimugR9XF17-OZ7B9fNnxWw","https:\/\/en.wikipedia.org\/wiki\/HomeLight"],"description":"Everything you need to know to sell your house faster and for more money. Articles, guides, and advice from top agents all over the U.S.","email":"support@homelight.com","telephone":"(888) 688-0350","legalName":"HomeLight","foundingDate":"2012-01-01","numberOfEmployees":{"@type":"QuantitativeValue","minValue":"201","maxValue":"500"}},{"@type":"Person","@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/person\/19ca1f71cf094b315da27c8ee1093d52","name":"Alexa Collins","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/1cc3b467c3636eb12e25d49810df3f83df6fb61e907141203b6af1b7712e41c3?s=96&d=blank&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/1cc3b467c3636eb12e25d49810df3f83df6fb61e907141203b6af1b7712e41c3?s=96&d=blank&r=g","caption":"Alexa Collins"},"description":"Alexa Collins has had her work featured by USA Today, Country Living, House Beautiful, Market Watch, and The San Jose Mercury News. Alexa has written about real estate for 3 years and has interviewed over 100 top real estate agents.","url":"https:\/\/www.homelight.com\/blog\/author\/alexa-collins\/"}]}},"_links":{"self":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts\/2564","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/comments?post=2564"}],"version-history":[{"count":0,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts\/2564\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/media\/47418"}],"wp:attachment":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/media?parent=2564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/categories?post=2564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/tags?post=2564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}