No, mortgages are not limited to 30 years; lenders commonly offer 10, 15, and 20-year fixed terms, plus adjustable-rate loans with varying durations. The 30-year fixed-rate mortgage is the default choice for most homebuyers in the United States. It offers the lowest monthly payment for a fixed loan, which makes expensive homes more accessible. Because […]

No, not all mortgages are amortized; interest-only loans and balloon payments delay principal reduction compared to standard loans. Most homebuyers assume every monthly payment chips away at their debt. You pay the bank, the balance goes down, and eventually, you own the house free and clear. That is the standard path, but it is not

No, not all mortgages are backed by Fannie Mae; many are held by Freddie Mac, Ginnie Mae, private lenders, or banks depending on the loan type. You sign the papers at a closing table. You send your monthly payment to a specific bank. It feels like that bank owns your home loan. In reality, the

No, private lenders, the FHA, and the VA also hold millions of U.S. loans, meaning Fannie Mae and Freddie Mac do not back every single mortgage. Most homeowners assume their bank owns their home loan. In reality, your bank likely sold that loan shortly after you signed the paperwork. While Fannie Mae and Freddie Mac

No, they are not. While fixed-rate mortgages in Canada typically compound semi-annually, variable-rate loans and U.S. mortgages usually compound monthly. Mortgage math often catches borrowers off guard. You might assume every loan works the same way, but the fine print regarding interest calculation changes based on your location and loan type. This small detail affects

No, not all home loans require payment on the first, though it is the industry standard; most lenders offer a grace period until the 15th. Owning a home comes with a strict financial calendar. You likely organize your entire monthly budget around that massive payment leaving your account at the start of the month. It

No, not all mortgages are federally backed; private lenders hold conventional loans without government insurance, unlike FHA, VA, or USDA options. Buying a home involves navigating a maze of financial terms. You might hear about government guarantees, insurance premiums, and private lenders. It gets confusing quickly. Understanding who stands behind your home loan matters for

No, most mortgages are not FHA-backed; the government only insures specific loans for qualified buyers, while conventional loans make up the majority. Many first-time homebuyers assume “FHA” is just a synonym for a standard mortgage. This is a common misconception. The Federal Housing Administration (FHA) insures a specific slice of the market, but they do

No, not all mortgages are fixed rate; many borrowers choose adjustable-rate mortgages (ARMs) where interest fluctuates based on market conditions. Most homebuyers assume every loan comes with a set payment for thirty years. You might see a rate advertised and think that number stays on your bill forever. That assumption can cost you thousands of

Yes, almost all standard mortgages are front loaded, meaning you pay significantly more interest than principal during the early years of the loan term. You sign the papers, move into your new home, and start making payments. For the first few years, you diligently send the bank thousands of dollars. Then, you check your statement.