A fixed-rate mortgage keeps the same interest rate for the entire loan term—typically 15, 20, or 30 years. Your monthly payment stays predictable. An adjustable-rate mortgage starts at one rate and can change after an initial period, which means your payment may increase or decrease. Fixed rates offer stability and peace of mind. Adjustable rates can work if you plan to sell or refinance before the rate changes.

Down payment options vary widely. Some borrowers put down 20 percent, while others put down less. A smaller down payment means a higher loan amount and monthly payments, but it gets you into a home sooner. A larger down payment reduces your monthly costs and the total interest you'll pay. The right amount depends on your savings, your timeline, and what feels comfortable for your situation.

Beyond your principal and interest payment, you typically pay property taxes and homeowners insurance each month. If your down payment is less than 20 percent, you may pay mortgage insurance. There are also closing costs—typically two to five percent of the loan amount—paid at signing. These cover appraisals, inspections, title work, and lender fees. We'll break down every cost so you understand what you're paying for.