A residential mortgage is a loan used to buy or refinance a home. It involves borrowing money from a lender to purchase a residential property, with the property itself serving as collateral.

Your mortgage or residential home loan rates is influenced by factors such as your credit score, down payment amount, loan term, and current market conditions. Lenders also consider your debt-to-income ratio and financial stability.

Down payments typically range from 5% to 20% of the home’s purchase price. The amount you need depends on your financial situation, the type of mortgage, and lender requirements.

A fixed-rate mortgage has a constant interest rate throughout the loan term, whereas an adjustable-rate mortgage (ARM) has an interest rate that may change periodically based on market conditions.

To get pre-approved, provide a lender with your financial details, including income, assets, and credit history. The lender will evaluate your information and issue a pre-approval letter specifying the loan amount and interest rate you qualify for.

Consider how long you plan to stay in the home, your financial situation, and your ability to manage monthly payments. Shorter terms generally have lower interest rates but higher monthly payments, while longer terms offer lower payments but result in higher overall interest costs.