Best Mortgage Loans Providers in 2026
Buying a home is one of the biggest financial decisions you'll ever make, and finding the right mortgage can save you thousands of dollars over the li...
- Use our online loan comparison tool to find the best mortgage loan.
- Compare rates, terms, and origitaion fees from multiple lenders.
- Learn about mortgages, how they work, and whether you can afford it.
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What is a Mortgage Loan?
A mortgage loan is a home loan provided by a bank, mortgage firm, or other financial institution for the purchase of a house, either a primary residence, a secondary residence, or an investment residence.
In a home mortgage, the owner of the property (the borrower) transfers ownership to the lender on the condition that the title is returned to the owner after the final loan payment is made and all terms of the mortgage are met.
Key Questions About Mortgages
Why do you need a mortgage loan?
The cost of a home is often much greater than the amount of money saved by the majority of households. As a result, mortgages allow individuals and families to buy a home with a relatively small down payment (e.g., 20%) and a loan for the balance. In the event that the borrower defaults, the loan is secured by the value of the land.
Can anybody get a mortgage?
Mortgage lenders must approve prospective borrowers through an application and underwriting process. Home loans are only made available to those who have sufficient assets and income compared to their obligations to carry the value of a home over time. Your credit score is considered when deciding whether to extend a mortgage, and the mortgage interest rate varies based on risk, with riskier borrowers receiving higher rates.
What does a fixed vs variable mortgage mean?
Many mortgages have a fixed interest rate, which means the rate will not change for the duration of the loan (typically 30 or 15 years), regardless of whether interest rates rise or fall. A variable, or adjustable-rate mortgage (ARM), has an interest rate that varies over the life of the loan depending on market interest rates.
How many mortgages can I have?
In most cases, lenders will issue a first mortgage, known as a primary mortgage, and then allow for a second mortgage, known as a home equity loan. Most lenders will not allow a subsequent mortgage to be secured by the same house. However, you can have multiple mortgages on different properties for investment purposes, subject to qualifying income and debt-to-income ratios.
Should I buy a mortgage with cash?
A home mortgage is one of the most popular and also one of the most recommended types of debt.
Home loans have lower interest rates than almost any other type of loan an individual borrower might find since they are secured debt, there is an asset (the residence) that serves as collateral for the loan.
A home mortgage is a loan made by a bank, mortgage firm, or other financial institution to finance the purchase of a home. It has either a fixed or adjustable interest rate and a term of three to thirty years.
When the mortgage is paid off, the lender holds the title to the land, which it transfers to the borrower.
How a Home Mortgage Works
Because the entire purchase price of the house does not have to be provided upfront, home mortgages allow a much broader community of people to own real estate.
However, since the lender still owns the title to the house for the duration of the mortgage, it has the power to foreclose (seize it from the homeowner and sell it on the open market) if the borrower is unable to afford the payments.
A fixed or floating interest rate on a home mortgage is charged annually along with a contribution to the principal loan sum.
The interest rate and the periodic payment in a fixed-rate mortgage are usually the same for each term.
The interest rate and monthly payment of a home mortgage with an adjustable-rate fluctuate based on market conditions.
Because the homeowner faces the possibility of a rise in mortgage rates, interest rates on adjustable-rate home loans are usually lower than those on fixed-rate home mortgages initially.
In this case, the mortgage operates in the same way: when the borrower pays down the principal over time, the interest is calculated on a smaller basis, so that future mortgage payments go toward principal reduction rather than only covering the interest charges.
Types of Mortgages
Mortgages come in a range of shapes and sizes. Here is a table showing the different types of mortgages, their key features, and differences:
| Mortgage Type | Interest Rate | Loan Term | Down Payment | Key Features | Best For |
|---|---|---|---|---|---|
| Fixed-Rate | Fixed for entire loan term | 10-40 years (15 & 30 most common) | 5-20% (conventional) | Rate never changes; predictable payments | Borrowers wanting payment stability |
| Adjustable-Rate (ARM) | Fixed initially, then adjusts periodically | Typically 30 years | 5-20% (conventional) | Lower initial rate; rate caps protect against large increases | Short-term owners; those expecting rates to fall |
| FHA Loan | Fixed or adjustable | 15-30 years | 3.5% (580+ credit score) | Government-backed; mortgage insurance required | First-time buyers; lower credit scores |
| VA Loan | Fixed or adjustable | 15-30 years | 0% down payment | No mortgage insurance; military service required | Veterans and active military |
| USDA Loan | Fixed | 30 years | 0% down payment | Rural/suburban properties only; income limits | Rural homebuyers; moderate income |
| Jumbo Loan | Fixed or adjustable | 15-30 years | 10-30% | Exceeds conforming loan limits; stricter requirements | High-value properties; strong credit/income |
| Interest-Only | Fixed or adjustable | Varies | 20-30% | Pay only interest initially; principal payments later | Sophisticated borrowers; short-term ownership |
| Reverse Mortgage | Fixed or adjustable | No set term | N/A (existing equity) | Age 62+; converts equity to cash; no monthly payments | Seniors needing retirement income |
How to Apply for a Mortgage
Here is a basic outline of the process you should follow when you decide you wish to apply for a mortgage:
Get pre-qualified
Start by getting pre-qualified, which involves providing a lender with your overall financial picture including debt, income, and assets. The lender reviews this information and gives you an estimate of how much you can expect to borrow. Pre-qualification can often be completed within an hour online and is normally free of charge.
Get pre-approved
Fill out an official mortgage application and provide the lender with all required paperwork for a thorough investigation into your financial history and current credit rating. Pre-approval typically takes within 10 business days after full documentation is provided. You'll receive a written conditional commitment for a specific loan amount.
Find your home
With your pre-approval letter, search for a home at or below your approved price range. Having pre-approval shows sellers you're a serious buyer and can strengthen your offer.
Complete underwriting
After finding a home, the final phase is underwriting and loan commitment. This occurs only after the lender has approved both you as the borrower and the property through appraisal. Underwriting can take anywhere from a few days to several weeks depending on your financial situation's complexity.
Review loan documents
The lender will issue a Loan Estimate within 3 business days of your application and a Closing Disclosure at least 3 days before closing. Review all terms carefully before proceeding to closing.
Close on your loan
When you and the lender have reached an agreement on the home mortgage terms, the lender places a lien on the property as collateral for the loan. Complete the closing process to finalize your mortgage and receive the keys to your new home.
How Much of A Mortgage Can I Qualify For?
A mortgage loan amount is based on several key considerations that lenders use to assess your ability to repay the loan:
Down payment: The amount you can initially pay in cash. Down payment requirements vary by loan type - conventional loans typically require 5-20%, FHA loans require as little as 3.5%, and VA loans may require no down payment.
Your credit rating: A higher credit score presents less risk to the lender, so a smaller down payment may be required. A poor credit score may require a larger down payment and result in higher interest rates.
Proof of consistent income: The lender wants to ensure you have enough regular income to make the monthly payments. This includes salary, bonuses, self-employment income, and other verifiable income sources.
Debt-to-income ratio: The ratio of your total monthly debt payments to your gross monthly income. Most lenders prefer a DTI of 43% or lower, though some programs allow higher ratios with compensating factors.
Mortgage Affordability Example
Example: What mortgage can I afford with $100k salary?
While the old rule of thumb suggested multiplying income by 4 (so $100,000 income = $400,000 house), modern lending considers your complete financial picture:
Calculate your maximum monthly payment: We assume that someone earning $100,000 annually ($8,333 monthly) could afford up to $2,333 in housing costs (including principal, interest, taxes, and insurance).
Consider your existing debts: If you have $500 in monthly debt payments, your total debt payments shouldn't exceed $3,000 (36% of $8,333), leaving $2,500 for housing.
Factor in current rates: At 6.18% interest rate, a $2,333 monthly payment could support approximately a $350,000-$380,000 mortgage, depending on property taxes and insurance costs.
Add your down payment: With a 20% down payment ($70,000-$76,000), you could potentially afford a home in the $420,000-$456,000 range.
We also recommend the below budgeting rule to help you get in financial shape when you are preparing to get a mortgage:
What is the 50/30/20 Rule?
Also known as the 50/20/30 Rule, this popular personal budget recommends:
50/30/20 Rule
Recommended split of your income by percentage (%)
This simple plan helps you control debt while still enjoying life with your family.
50% - Your Needs
Half of your after-tax income covers essentials: mortgage, utilities, transportation, and groceries. When you have a mortgage, include home insurance (around $1,000/year) and property taxes (around $2,000/year). If you're over 50%, cut back on wants.
30% - Your Wants
This covers non-essentials like shopping, dining out, travel, and entertainment. Unlike needs, these can be reduced or cut if necessary.
20% - Savings and Debt
Put this toward your emergency fund (start with $500, build up to cover several months of expenses), paying off high-interest debt like credit cards, and retirement savings. Your emergency fund protects your credit score by ensuring you can cover unexpected costs without missing payments. If you lose your job, this 20% should keep you afloat - it's your safety net.
If you're still struggling with mortgage payments, consider refinancing or asking your lender about forbearance options.
Tax Benefits for Homeowners
Homeownership provides several tax advantages, particularly with recent changes from the One Big Beautiful Bill Act:
Mortgage Interest Deduction:
- Deductible on loans up to $750,000 (for homes purchased after December 16, 2017) or $1 million (for earlier purchases)
- The mortgage interest deduction is now permanent
State and Local Tax (SALT) Deduction:
- Increased to $40,000 for tax years 2025-2029 (up from $10,000)
- Includes property taxes and state income taxes
Private Mortgage Insurance (PMI):
- Starting in 2026, PMI will be tax-deductible as mortgage interest
- This applies to both conventional loan PMI and FHA mortgage insurance premiums
These changes make homeownership more attractive from a tax perspective, particularly for higher-income borrowers in high-tax states.
2026 and Beyond
Heading into 2026, affordability is finally improving as rates ease, price growth slows, and inventory continues to build. With 24 consecutive months of inventory gains and active listings above 1 million for six consecutive months, buyers have more options than they've had in years. However, inventory still remains 13.2% below 2017-2019 typical levels, so competition persists in many markets.
We are here to help you find the right mortgage broker for you. Start by using our comparison tool below to discover your right match: