A home is the biggest purchase most people make and the biggest loan most people carry. This hub covers buying a first home, mortgages and rates, the costs of owning, borrowing against home equity, selling, and investing in rental property, and links every DigitalWealthSource guide and tool on the subject.
Rates are dated where they appear; tax rules are current federal law for 2026.
Mortgage rates change every week; the mortgage rates guide explains what moves them and how to compare offers.
Affording a home is about the monthly payment, not the price. Lenders look at your debt-to-income ratio, the share of gross income that goes to the mortgage and other debts, and the payment includes more than principal and interest: property tax, homeowners insurance, mortgage insurance and any HOA dues. At today's rates each percentage point changes the payment on a $400,000, 30-year loan by roughly $260 to $275 a month, so the rate you lock matters as much as the price you negotiate.
The down payment decides what the loan costs beyond the rate. Put less than 20% down on a conventional loan and you pay private mortgage insurance until the balance falls to 78% of the original value; FHA loans charge mortgage insurance for the life of the loan when the down payment is under 10%. Closing costs, typically 2% to 5% of the loan, come on top, and first-time buyer programs can cover part of either.
Owning costs more than the mortgage. Maintenance, insurance and property tax all rise over time, and insurance premiums have climbed fastest in the places most exposed to storms and fire. Equity built up in the home can be borrowed through a home equity loan or a line of credit; a line of credit is priced as the prime rate plus a margin, so its rate moves with every Fed decision.
Taxes favor homeowners less than many assume. The mortgage interest and property tax deductions only help if you itemize, and with a 2026 standard deduction of $16,100 for single filers and $32,200 for joint filers, many owners don't. The larger break comes at sale: up to $250,000 of gain, or $500,000 for a married couple, is tax-free on a main home.
Rental property is a business. The return depends on rent minus every cost, including vacancy, repairs and management, and on financing that still works if rates stay high. Depreciation lowers the tax on rental income, and a 1031 exchange can defer the gain when you sell, if you identify the replacement property within 45 days and close within 180.
Each path is a short reading order. Start at step 1 and stop when your question is answered.
For renters working toward a purchase.
For homeowners managing the loan and the costs.
For building income from property.
Start with the monthly payment rather than the price. Lenders often allow total debt payments, the mortgage included, of up to about 43% to 50% of gross monthly income depending on the loan program, but a comfortable budget keeps the full housing payment, with tax, insurance and any HOA dues, closer to 28%. The how-much-house guide walks through the calculation.
Less than 20%. FHA loans need 3.5% down with a credit score of 580 or higher, some conventional loans take 3%, and VA and USDA loans can require nothing down. Putting less than 20% down on a conventional loan adds private mortgage insurance until the balance falls to 78% of the original value, and closing costs of about 2% to 5% of the loan come on top.
Refinancing pays when the monthly savings recover the closing costs well before you expect to sell or pay off the loan. Divide the total cost of the new loan by the monthly savings to find the break-even month, and compare against how long you plan to stay. Resetting to a new 30-year term can lower the payment while raising the total interest paid.
Yes, on up to $750,000 of mortgage debt used to buy, build or improve a main or second home, but only if you itemize. With a 2026 standard deduction of $16,100 for single filers and $32,200 for joint filers, many homeowners get no benefit from the deduction. Property tax counts toward the $40,400 cap on state and local taxes for 2026.
Usually not on a main home. You can exclude up to $250,000 of gain, or $500,000 for a married couple filing jointly, if you owned the home and lived in it for at least two of the five years before the sale. Gain above that, and gain on a rental or second home, is taxed as a capital gain.