Straight answers
Common mortgage questions
How much house can I afford on my salary?
Most lenders want your total monthly debts, including the new house payment, to be roughly 36–45% of your gross monthly income or less, and some programs allow more. As a rough example, a $70,000 salary ($5,833/month) with few other debts often supports a total house payment of about $2,000–$2,400. Your rate, taxes, insurance, and down payment decide the final price. A pre-approval gives you your real number.
How much do I need for a down payment?
Usually far less than 20%. Conventional loans start at 3% down for qualified first-time buyers, FHA at 3.5%, and VA and USDA loans can require 0% down. On a $300,000 home, that's $9,000 (3%) or $10,500 (3.5%), plus closing costs. Down payment assistance programs in Florida may cover part of it.
Is $10,000 enough to buy a house?
Often, yes. $10,000 can cover a 3–3.5% down payment on a home priced around $285,000–$330,000. Seller credits or down payment assistance can help with closing costs. Whether it's enough depends on the price, the loan program, and the closing costs in your area.
Do you pay back an FHA loan?
Yes. An FHA loan is a regular mortgage that you repay monthly. The Federal Housing Administration insures it for the lender, which is why it allows lower down payments and credit scores. FHA loans include mortgage insurance. Some down payment assistance paired with an FHA loan is a grant or a forgivable second loan, and that part may not need to be repaid.
When is refinancing worth it?
Refinancing is usually worth it when your monthly savings cover the closing costs before you plan to move or refinance again. That's your break-even point. The old "2% rule" (refinance only when rates drop 2 points) is outdated. Even a 0.5–1% drop can pay off on a larger loan if you'll stay long enough. Refinancing can also make sense to remove mortgage insurance, shorten your term, or take cash out.
How much does it cost to refinance a $300,000 mortgage?
Refinance closing costs usually run about 2–5% of the loan amount, so roughly $6,000–$15,000 on $300,000. That covers lender, appraisal, title, and recording fees. You can often roll the costs into the loan or take a slightly higher rate in exchange for lender credits. Streamline options such as the FHA Streamline and VA IRRRL can cost less.
Can I refinance with less than 20% equity?
Yes. Conventional rate-and-term refinances can go up to about 97% loan-to-value, FHA up to about 97.75%, and the FHA Streamline and VA IRRRL often need no appraisal at all. Cash-out refinances generally require more equity: you usually keep at least 20% (VA allows more).
What determines my mortgage rate?
Your rate depends on market conditions (bond yields), your credit score, your down payment or equity, the loan type and term, the property type and use, and whether you buy discount points. Rates change daily, so the best way to see yours is a personalized quote, not an advertised average.
These are general educational answers, not loan approvals or rate quotes. Eligibility, terms, and costs depend on your situation and current program guidelines.
