A mortgage is the single biggest loan most people ever take on, and the words around it — escrow, points, PMI, amortization — get thrown around like everyone already knows them. This is the plain-English foundation: what a mortgage is, who the players are, and how the pieces fit together, written by a licensed loan officer.
Start here if you are new to all of this. Once the basics click, the affordability math and the loan-program choices in the rest of the learning center are far easier to follow — and you can run your own numbers with confidence instead of taking anyone's word for it.
In this guide
Every topic in The Mortgage Basics, each answered on its own page.
How does a mortgage work?
Principal, interest, escrow, and the full life of a home loan from application to payoff.
Read moreMortgage terms glossary
The 40 words every borrower keeps hearing — defined in plain English, no jargon.
Read moreFixed vs. adjustable-rate mortgages
How a fixed rate and an ARM differ, and which structure tends to fit which borrower.
Read moreMortgage points explained
What discount points are, how 'buying down' works, and when paying points makes sense.
Read moreWhat is an escrow account?
How your taxes and insurance get collected and paid through escrow, and why your payment can change.
Read more
What determines your mortgage rate
The factors that move a mortgage rate — credit, down payment, loan type, and the market — explained without quoting a number.
Read moreReady to see your real numbers?
Get pre-qualified in about 10 minutes — a soft credit check to start, no impact to your score, and no obligation.
Michael Hernandez, Branch Manager · Pacific Bay Lending Corp NMLS #192103 · Equal Housing Lender. Homes shown are public listings for illustration of what's available in this range — not an offer to make a loan on, or sell, a specific property. This is not a commitment to lend; all loans subject to credit approval, program guidelines, and underwriting.