RESOURCES
Mortgage Education
& Tools
Everything you need to understand home financing. Free calculators, comprehensive guides, and a complete glossary of mortgage terms.
Calculators
Free tools to help you plan and make informed decisions.
Mortgage Calculator
Calculate your monthly payment including principal, interest, taxes, insurance, and PMI.
Use Calculator →Affordability Calculator
Find out how much house you can afford based on your income and debts.
Use Calculator →Refinance Calculator
See if refinancing makes sense. Calculate savings and break-even point.
Use Calculator →Educational Guides
In-depth resources for every stage of your mortgage journey.
Home Purchase Guide
Most PopularComplete walkthrough of the home buying process, from pre-approval to closing.
Loan Products Explained
Compare conventional, FHA, VA, USDA, construction, and investment loans.
Commercial & Investment
DSCR loans, multi-family financing, and investment property strategies.
Refinancing Guide
When to refinance, types of refinancing, and what to expect.
Pre-Approval Process
What you need, how it works, and why it matters.
Mortgage Glossary
Plain-English definitions of common mortgage terms.
Amortization
The process of paying off a loan through scheduled payments over time. Early payments are mostly interest; later payments are mostly principal.
APR (Annual Percentage Rate)
The total yearly cost of borrowing, including interest rate plus fees. Use APR to compare lenders since it gives a more complete picture than interest rate alone.
Appraisal
A professional assessment of a property's market value. Required by lenders to ensure the home is worth the loan amount.
Closing Costs
Fees paid at closing beyond the down payment: lender fees, title insurance, appraisal, prepaid taxes/insurance. Typically 2-5% of loan amount.
Conforming Loan
A mortgage that meets Fannie Mae/Freddie Mac guidelines, including loan limits. In 2024, the limit is $766,550 for most areas.
Conventional Loan
A mortgage not backed by the government (unlike FHA, VA, USDA). Typically requires higher credit scores but offers more flexibility.
Debt-to-Income Ratio (DTI)
Your monthly debt payments divided by gross monthly income. Lenders use this to assess affordability. Most loans require DTI under 43-50%.
Down Payment
The upfront cash payment toward the home purchase. Typically 3-20% of purchase price depending on loan type.
DSCR (Debt Service Coverage Ratio)
For investment properties: rental income divided by mortgage payment. A DSCR of 1.25 means rent exceeds payment by 25%.
Earnest Money
A deposit made when an offer is accepted, showing the buyer is serious. Typically 1-3% of purchase price, credited toward closing.
Equity
The difference between your home's value and what you owe. If your home is worth $400,000 and you owe $300,000, you have $100,000 in equity.
Escrow
A neutral third party that holds funds during a transaction. Also refers to the account where lenders hold money for taxes and insurance.
FHA Loan
A government-backed loan insured by the Federal Housing Administration. Lower credit requirements (580+) but requires mortgage insurance for the life of the loan.
Fixed-Rate Mortgage
A loan where the interest rate stays the same for the entire term. Provides payment stability and protection from rate increases.
Jumbo Loan
A mortgage exceeding conforming loan limits. Requires stronger credit and larger down payment but enables financing of high-value properties.
Loan-to-Value Ratio (LTV)
The loan amount as a percentage of property value. An 80% LTV means 20% down payment. Lower LTV = better rates and no PMI.
Mortgage Insurance (MI/PMI/MIP)
Insurance that protects the lender if you default. Required when putting less than 20% down. PMI is for conventional; MIP is for FHA.
Points (Discount Points)
Upfront fees paid to lower your interest rate. One point = 1% of loan amount. Can make sense if you'll keep the loan long enough to recoup the cost.
Pre-Approval
A lender's verified commitment to lend you a specific amount. Based on verified income, assets, and credit. Stronger than pre-qualification.
Principal
The original loan amount borrowed, not including interest. Each payment reduces principal (and pays interest on the remaining balance).
Rate Lock
A guarantee from the lender that your interest rate won't change for a specified period. Typically 30-60 days; longer locks may cost more.
Title Insurance
Insurance protecting against claims or disputes over property ownership. Lender's policy is required; owner's policy is optional but recommended.
Underwriting
The process where a lender verifies all information and makes a final loan decision. The underwriter reviews income, credit, assets, and property.
VA Loan
A mortgage guaranteed by the Department of Veterans Affairs for eligible veterans. No down payment required and no monthly mortgage insurance.
Quick Start FAQs
Common questions from people starting their mortgage journey.
Start with pre-approval. Gather your documents (pay stubs, W-2s, bank statements), then apply online. Pre-approval takes 1-3 days and shows you exactly how much you can borrow.
It depends on the loan type. FHA: 580 minimum (500 with 10% down). Conventional: 620 minimum. VA: No official minimum, but most lenders want 620+. Higher scores mean better rates.
There's no single right answer. 20% avoids PMI on conventional loans. FHA requires 3.5%. VA and USDA offer 0% down. Consider your savings, comfort level, and opportunity cost.
Rates change daily based on market conditions. Your specific rate depends on credit score, down payment, loan type, and property. Get a personalized quote through our pre-approval process.
Typically 30-45 days from accepted offer to closing. Pre-approval speeds things up. Construction loans and complex situations may take longer.
Yes! Debt is factored into your debt-to-income ratio, but it doesn't disqualify you. Many successful buyers have student loans, car payments, or credit card debt.
Beyond Financing
TRULUX is more than mortgages. We offer full-service real estate and custom home construction—all connected.
Ready to get started?
Get pre-approved and see your real options.
NEXT STEP
Ready to Find Your Property?
Now that your financing is in place, our real estate team is ready to help you find the perfect home.