While a 20% down payment is often regarded as the standard in the home-buying process, it's not a strict requirement. There are alternative options available for those who may not have saved this amount. For instance, FHA loans are a popular choice, permitting down payments as low as 3.5%. To be eligible for an FHA loan, applicants need to demonstrate a consistent employment history over the past two years and don't need to have an impeccable credit score.

Advertisements often display the most favorable interest rate, which typically applies to borrowers with exceptional credit scores (usually above 750) and significant down payments. If your financial situation does not align with these ideal conditions, the lender may see you as a higher risk, which is reflected in a higher interest rate. Your final rate will also depend on various factors, including your credit history, the amount you are borrowing, and the type of property you are purchasing

The choice between a 30-year fixed-rate mortgage and other options depends on your individual circumstances and financial goals. While 30-year fixed-rate mortgages are popular due to their stability, they might not be the best fit for everyone. For example, if you plan to relocate in a few years, an adjustable-rate mortgage (ARM) may be more cost-effective. Additionally, if you can manage higher monthly payments, a 15-year mortgage could save you money in the long term on interest payments.

Private mortgage insurance, or PMI, is a type of insurance that homebuyers are required to purchase if their down payment is less than 20% of the home's value. It serves as a safety net for the lender in the event that the borrower is unable to continue making mortgage payments. PMI typically costs between 0.3% and 1.15% of the total loan amount. If you would prefer not to pay PMI, an alternative is to inquire if the lender can incorporate the cost of the insurance into your mortgage, though this may result in a higher interest rate.