Home Buyer FAQs
06/25/2025
Home Buyer FAQs
Buying a home is always a stressful process, and landing your dream home sometimes seems like a moving target. Interest rates, terms, special offers— all these things change by the time many people are buying their next home or their first. Here are some frequently asked questions about mortgages and home buying and their answers to help demystify the process!
Question #1: Is APR different from the interest rate?
Answer #1: Yes! APR is different from the interest rate and is often higher than your regular interest rate. The interest rate is the percentage, or cost, you will pay to borrow the money from the bank. APR includes the interest rate, but also includes costs like closing costs, broker fees, et cetera. When looking for a home loan, it is important to look at both numbers from prospective lenders. Just because two lenders have the same interest rate, does not mean the APR will be the same.
Question #2: Where do first time home buyers even get started?
Answer #2: Buying a home for the first time is scary and overwhelming. The first thing you should do is look at your current finances and financial history. Create a budget that includes your maximum down payment and use a calculator to see what your monthly mortgage payment might be. Then, make sure to also budget for those little things that pop up for homeowners like a leaky roof or plumbing problems. Then, pull your credit report. You get one free credit report a year from https://www.annualcreditreport.com. Check to see if there is any room for improvement, like decreasing your debt-to-income ratio. After this, it’s time to reach out to a lender and realtor. They can help you get pre-approval letters and get you going on the house hunt. Make sure you speak with your lender about first-time home buyer incentives or other programs!
Question #3: What is PMI and do I need to get it?
Answer#3: PMI stands for Private Mortgage Insurance, and you may be required to get it to qualify for a loan. Private mortgage insurance protects the lender in case the borrower (you) stops making loan payments. Lenders will frequently require this type of insurance if the down payment is less than 20% of the home’s purchase price. PMI can be required on some conventional loans and most government loans. The cost of PMI is calculated based on your loan amount and is usually between 0.2% and 2% annually.
Question #4: What does my monthly mortgage payment include?
Answer #4: The two main factors of your monthly payment will be the principal (based on the amount you borrowed) and the interest (the cost of borrowing the money). Your monthly payment will also include things like real estate taxes, PMI (if required), and other fees that go into an “escrow” account (fees collected monthly and paid annually). Keep in mind that if you get a fixed-rate mortgage, your monthly payment should stay the same, but if you get an adjustable-rate mortgage, your payment will fluctuate based on market conditions.
Question #5: How do I get in contact with a mortgage lender at The Savings Bank?
Answer #5: Our mortgage team has many years of experience and local knowledge to get you well on your way to your dream home. With local decision-making and a dedicated team of experts, The Savings Bank would love to help you finance your next home. You can reach our loan experts Monday-Friday 8 am – 5 pm at 1-800-582-2265. You can also visit us at one of our branches or online at TheSavingBankOhio.bank to pre-qualify today!
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Sources:
https://www.annualcreditreport.com/index.action
https://yourhome.fanniemae.com/frequently-asked-questions/homebuyer