Mortgage insurance offers help to buyers who can’t afford to put down 20% up front

Private mortgage insurance protects the lender rather than the borrower

Also known as a “PMI,” private mortgage insurance may be required for those who have a conventional loan and put less than 20% down on their home. A PMI could also be required for someone refinancing their mortgage if they have less than 20% equity remaining in the property.

Mortgages are loans used to buy property

A mortgage is a loan used to buy property, like a house. Borrowers typically put down a percentage of the cost of the home, and the amount left over is financed through a lender, like a bank.

The rare, so-called 'assumable' mortgage is landing homebuyers a 3% rate.

In 2024, 74% of homebuyers took out a mortgage

Debt owed on mortgages made up about 70% of US consumer debt as of 2025. Mortgage collateral ensures the lender isn’t at a complete loss if the borrower defaults. Under most mortgage contracts, the property is considered collateral under the loan. This means that if a borrower doesn’t repay the loan, then the lender can seize their property.

57% of future homebuyers plan to put down less than the recommended 20% on a house

Historically, experts have recommended buyers put down 20% on a house when buying. But due to rising housing costs and the cost of living, this goal is unattainable for many buyers.

Historically, borrowing money from other people to purchase property was common until private financing companies—primarily building and loan associations—stepped in to offer mortgages to buyers.

To continue selling mortgages, agencies that determine how risky a loan is gave high ratings to homebuyers regardless of their actual risk portfolio.

Roughly 37% of first-time US home buyers have student debt

When those people have extra money, they might wonder: Is it better to pay down my mortgage or my student loans first? This article argues that the answer depends on each loan's interest rate, among other factors.

Life insurance offers peace of mind, ensuring that loved ones are financially supported after one's passing

People typically apply for life insurance policies through specific companies or online marketplaces. This video offers more information that's important to know when considering buying life insurance.

Securitization has become common practice in home financing

When a homebuyer finances with a lender, they aren’t necessarily the one footing the bill. After a buyer secures a home loan, the lender can sell the loan to another financial institution or a private institution. That group can later sell that mortgage to investors. This is called securitization.

Watch Margot Robbie explain subprime mortgages—risky loans given to homebuyers with low credit scores or no income verification.

In real estate, a larger down payment can reduce your loan amount

However, the trade-off is liquidity: Tying up too much cash in a home can reduce emergency savings and delay your purchase.

The average monthly mortgage payment in the US costs 38% more than monthly rent

A recent study showed that the price gap between renting and buying grew in 38 major US metro areas since last year. The metro areas with the smallest price gaps between renting and buying include Detroit, Philadelphia, and Cleveland.

How interest rates affect homebuying

Rising interest rates impact every aspect of buying a home. This five-minute article gives a high-level overview of the relationship between the housing market and interest rates.

Use this mortgage calculator to estimate how much you can borrow, factoring in fundamentals such as financial standing, property cost, loan length, and more.

Refinancing a mortgage is when a homeowner exchanges their current loan for a new one

Homeowners typically refinance to secure a lower interest rate and potentially a new loan term length. Debt owed on mortgages made up about 70% of US consumer debt as of 2025.

Life insurance premiums can cost anywhere between $80 and $1K a month, depending on the policy

A life insurance premium is essentially the monthly cost or fee someone pays to an insurance company in exchange for a specified sum of money after their death to their beneficiaries. Factors like term length, health and lifestyle, and any added benefits can impact your premium.

Permanent life insurance policies can sometimes help you cover expenses, access cash, and more

If you’re planning on purchasing permanent life insurance, your policy will come with a cash value (which acts like a savings account). To make the most of this account, you could pay your life insurance premium, apply it towards a loan, or put it towards long-term or terminal care.

Life insurance can can cover funeral expenses, loss of income, and more

Life insurance can act as a financial safety net if your main financial provider dies. Among other things, it can cover any debts that were left behind. In this video, a Yahoo Finance contributor dives into why life insurance could be the key financial protection your family needs.

Getting prequalified or preapproved for a loan is typically step one in securing a home loan

While prequalification and preapprovals give buyers an idea of the type of loan offer they might expect, the prequalification process is much more straightforward than getting preapproved. However, some real estate agents require buyers to get preapproved, and some sellers may take a buyer's offer more seriously.

Before the Great Recession, lax requirements to get a mortgage resulted in mass defaults that left nearly 19 million homes vacant.

Life insurance policies are often recommended for people with financial dependents

If you’re a parent, spouse, business owner, homeowner, or if you hold a lot of debt, you might want to consider life insurance. It can replace a loss of income or pay off debt.

People can customize their life insurance policies by adding on extra benefits

While most life insurance policies have similar coverage, adding on these extra benefits (called riders) can help make these policies more bespoke. Some common added benefits include coverage for your children, a high-risk lifestyle, or a critical or terminal illness.

The factors stirring up a home insurance storm

The cost of the average home insurance premium shot up 33% between 2020 and 2023 in the US, a trend mimicking heightened inflation. But beyond the cost, insurers are also pulling out of major markets like Florida and California, and millions of policies aren't being renewed as the number of $1B weather disasters continues to increase each year. Read up on the difficulties the home insurance market faces here.

The term ‘mortgage’ was born out of the French word for ‘dead pledge’

Borrowing money to buy a house has been a global practice since the Romans in the fifth century BCE. But before the mortgage, there was the “dead pledge,” which labeled the property as “dead” to the borrower until they paid off their loan to the lender.

Subprime lending practices, which fueled the housing bubble, surged after 2000.

A life insurance cost calculator

The overall cost of life insurance coverage ranges widely. Factors like your term length, death benefit (the money paid out after death), health and lifestyle, and any added benefits can drastically change your monthly cost. This calculator can help you determine how much your desired coverage could run you per month.

Fannie Mae and Freddie Mac are federal housing enterprises originally established to offer affordable housing loans to buyers

The Federal National Mortgage Association is commonly called Fannie Mae, and the Federal Home Loan Mortgage Corporation is called Freddie Mac. Since Fannie Mae’s creation in 1938 and Freddie Mac’s in 1970, they’ve become staples of the housing market.

To avoid a total collapse of the housing market, the US government took control of the two leading mortgage companies, Fannie Mae and Freddie Mac.

Homes in areas increasingly prone to natural disasters often aren't covered by private insurance

Instead, they're often covered under insurance plans of last resort, known as FAIR (Fair Access to Insurance Requirements) plans. However, as more and more homes become covered by FAIR, the program is facing strain. This interactive visual helps explain the new problems FAIR is facing.

The pros and cons of long-term renting

Soaring mortgage rates and inflated home prices have led more consumers to opt to rent instead of buying, becoming “forever renters.” This article weighs the costs and benefits of renting instead of buying. Benefits include flexibility, less upkeep, and potentially lower expenses, while downsides include less stability and reliance on landlords. Read this article and decide whether homeownership or renting is the choice for you.

For much of human history, homeownership was primarily associated with the elite

Before the Industrial Revolution, early mortgages were rather exclusive loans given only to nobility. But as more people gained more wealth through the Industrial Revolution, banks began to take on “higher-risk” loans to everyday people.

A margin call is a way for traders to pay off debts by selling a security before they may be ready to do so.

See how many days of work it takes to afford a monthly mortgage in each US state, with the US average being 14 days.

The word 'mortgage' comes from medieval French, meaning 'death contract.'

See the annual income required to purchase a typical three-bedroom home in each state as of 2025, based on a 10% down payment, a 6.65% interest rate on a 30-year fixed mortgage, and a 30% income-to-housing cost threshold.

Consequences of a bad credit score

A bad credit score can lead to spending roughly $100K more on a typical mortgage. Poor scores also prevent you from getting certain jobs, apartments, and more, hindering you from building wealth in the long term.

A ‘rent vs. buy’ financial calculator

The New York Times built a continuously updated financial calculator to help potential homebuyers figure out which makes more sense given their individual situation: buying or renting a home. It takes into account how long someone plans to own the home for, mortgage rates, and more.

Investors need a 'margin account' to short sell stock

Margin accounts are leveraged accounts through brokerage firms that allow investors to make trades without the full amount of capital on hand. Similar to a secured loan, margin accounts often require some form of collateral and typically have a cap on how much investors can borrow. However, trading with a margin account is much riskier than a traditional investment account. Fees and charged interest are due on margin accounts, regardless of trade performance, meaning it's possible for investors to lose more money than just their initial investment.

Flood insurance policies from the National Flood Insurance Program cost just over $1,100 per year on average

Private residential policies range from $600 to $2,800 per year. Taking steps to lower flood risk in your home, such as installing flood vents or elevating home utilities, can make premiums cheaper.

About 88% of all homebuyers feel their home is a good investment.

Should you get earthquake insurance?

Standard home insurance doesn’t typically cover earthquakes. Even if you don't live in a state that's known for its earthquakes like California, it might be worth considering—although it's worth noting that only 13% of California residents have earthquake insurance. Learn more about earthquake insurance in this article.

The two main types of life insurance are term and permanent

The biggest difference between the two is how long they cover the life of the insured person and how much they cost. This guide can help you learn more about term and permanent life insurance, plus their different variations, to choose the right policy for you.

A 'death benefit' can replace lost income, pay for a funeral, or leave a legacy

Those beneficiaries are usually family members. In exchange, the policyholder pays a monthly fee for coverage. It’s normally used to cover the life of a financial provider.

See how 30-year fixed mortgage rates have changed over time—from a 1980s peak of roughly 18%, to hovering around 3% during the COVID-19 pandemic.

Term life insurance costs about $80 per month

Permanent life insurance, on the other hand, can run you anywhere between $540 and $700 a month. However, the average monthly cost can vary depending on your age, sex, and policy type.

The 30-year fixed-rate mortgage is by far the most popular in the US

The most common types of loans are conventional, jumbo, fixed-rate, adjustable, and government-backed.

If you decide to buy term life insurance, coverage will eventually expire

If you decide to buy term life insurance, you’ll no longer have coverage once the agreed-upon timeframe is over. You can always plan ahead to pay off major expenses before your coverage ends, but if this doesn’t happen, you may need to renew or replace your policy.

Most life insurance policies cover death by natural causes or accidents

However, some other causes aren’t always covered. Suicide in the first two years of coverage, high-risk activities or jobs, and war or terrorism aren’t typically covered by life insurance, for instance. However, some added benefits (or “riders”) can account for some of these situations.

The market share of institutional investors in the US housing market is less than 1%

Institutional investors have drawn negative media attention for their purported role in limiting housing supply and driving housing unaffordability. This report separates myth from fact in the nuanced discussion around institutional investors' role in the US housing market.