What are the costs associated with getting a mortgage (e.g. down payment, closing costs, etc.)?

Getting a mortgage involves several costs, including:

1. Down payment: This is a portion of the purchase price of the home that you pay upfront. The amount of the down payment can vary, but it is typically at least 5% of the purchase price. Some loans, like VA and USDA loans, may require no down payment, while others, like conventional loans, may require a down payment of up to 20%.

2. Closing costs: These are the fees associated with processing and closing the mortgage loan. Closing costs can include things like application fees, appraisal fees, attorney fees, title search fees, and other fees that vary by lender and location. Closing costs can range from 2% to 5% of the loan amount.

3. Private Mortgage Insurance (PMI): If you make a down payment of less than 20%, you may be required to pay PMI, which is an insurance policy that protects the lender if you default on the loan. PMI can add an additional 0.5% to 1% of the loan amount to your monthly payment.

4. Property taxes and insurance: You will need to pay property taxes and homeowners insurance on your home. These costs can vary depending on the location and size of the home.

It's important to keep in mind that these costs can add up quickly, so it's important to budget for them when considering how much you can afford to borrow for a mortgage.