Key takeaways A first-lien HELOC merges a first mortgage with a variable-rate credit line, becoming the primary loan for the property. This type of HELOC can function as a cash flow management and mortgage prepayment tool, automatically applying funds towards the HELOC balance every time income is deposited through a…

irina88w/GettyImages; Illustration by Hunter Newton/Bankrate Key takeaways Private mortgage insurance (PMI) is an extra fee for conventional mortgage borrowers putting down less than 20%. The amount you’ll pay for PMI depends on your loan and down payment size, whether it’s a fixed- or adjustable-rate mortgage and your credit score. The…

David Papazian/ Getty Images; Illustration by Austin Courregé/Bankrate Key takeaways FHA loans and conventional loans are both issued by private lenders, but FHA loans are insured by the federal government, and conventional loans are not. FHA loans have lower credit hurdles. You can qualify for an FHA loan with a…

Key takeaways Home equity loans and HELOCs (home equity lines of credit) both allow you to borrow against your ownership stake in your home, using the property as collateral. Home equity loans’ fixed rates are a good fit for people who want payment stability and know how much they need…