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Home Loans
Find the home loan & mortgage rate that works for you
Home loans are provided and serviced by third parties.. Read more
Home loans made simple
Whether you're shopping for your first home or the house of your dreams, Mr. Cooper® can make it happen. With several types of home mortgages to choose from, an expert team of U.S.-based home advisors, and a jargon-free application process, your new home sweet home is just around the corner.
Compare interest rate options
Fixed rate: A fixed-rate mortgage has an interest rate that doesn't change, locking you into the same rate for the life of the loan. Your rate and monthly payment may be higher than the initial period of an ARM, but if rates increase, yours won't go up. If you plan on staying in your home for the long haul a fixed-rate mortgage may help you avoid sudden increases.
Adjustable rate: Adjustable-rate mortgages (ARM) have an initial fixed rate for a certain number of years, which then converts to a variable rate that may go up or down based on interest rate changes over time. If you plan on staying in your home for only a few years, an ARM may be a good option.
Check with your financial advisor or a mortgage professional to determine whether a fixed-rate or adjustable-rate mortgage is best for you.
A home loan for every financial situation
From conventional loans to mortgage options for veterans, you can find a home loan that fits your specific financing needs right here.
Types of home loans
Conventional loan
Available with both fixed and adjustable rates, conventional loans are a popular choice for many homeowners. They are typically available in 10, 15, 20, and 30-year terms. These loans may require as little as 3% down, though if you put down less than 20%, you'll likely need to pay mortgage insurance.
FHA loan
FHA loans are backed by the Federal Housing Administration, providing an affordable option for homebuyers who qualify for this type of loan. These loans may require down payments of as little as 3.5% of the purchase price. However, you will need mortgage insurance if you go with an FHA loan.
VA loan
Veterans, active-duty service members, and surviving spouses of veterans may be able to take out a VA loan — a home loan backed by the U.S. Department of Veterans Affairs. VA loans typically offer lower down payments without requiring mortgage insurance.
Jumbo loan
Jumbo loans are for home purchases that exceed the lending limits of a conventional loan. Interest rates tend to be higher for jumbo loans.
Frequently asked questions about home loans
How much home can I afford?
Use Progressive's home affordability calculator to estimate how much home you can afford based on your income, expenses, and debt.
How does the mortgage process work, and how long does it take?
Many shoppers get pre-approved for a mortgage before they go house shopping; that way, they know what price range they're working with. During the pre-approval process, your lender will typically pull your credit to determine your eligibility and how much they can lend you.
Once pre-approved and ready to make an offer on a house, you can apply for your mortgage. Your lender will look at various information, including your employment status, income, debts, assets, and information about the property you're buying. Your lender should provide you with a Loan Estimate within three days of applying, which will provide you with a snapshot of the loan's expected rates, fees, and associated costs.
After you receive your Loan Estimate, your lender will start the underwriting process — verifying your application information, finalizing your loan details, and confirming the property's value is enough to cover the amount you're borrowing. Then, once your mortgage is approved, it's time to close on the house and pick up the keys!
How is mortgage interest calculated?
Banks calculate mortgage interest as a percentage of the remaining principal (the amount you have yet to pay back). Mortgages are typically paid monthly, with payments split between your principal and interest owed. You'll likely pay more interest at the beginning of your mortgage since you'll have a higher principal balance. But as your principal balance goes down, you'll pay less in interest each month — to the point where most of your mortgage payment will go toward your principal.
