What is affordable housing?

While there is no formal definition, the general rule is that buyers should spend no more than 30 percent of their adjusted gross income on a mortgage or rent.

Other costs to consider when buying a home

. Additional fees involved in the purchase, such as building inspections, land surveys, water tests, closing costs and real estate agent fees

. Property taxes

. Insurance

. Moving expenses

. Utilities and connection fees, including electricity, water, sewer, cable or satellite, Internet, phone, and garbage removal

. Heat, such as wood, oil or electric

. Maintenance and upkeep

. Unforeseen emergencies

Things to consider when

buying a home

. Location

. Size, including number of bedrooms, baths, storage, etc

. Type of mortgage that fits your needs and goals

. Schools

. Zoning

. Energy efficiency

. Other development in the area

Common mortgage types

. Fixed rate: The interest rate remains fixed for the life of the mortgage regardless of market conditions.

. Adjustable rate: The interest rate isn’t fixed, but is tied to an index and is periodically adjusted as the rate index moves up or down.

. Variable rate: A long-term mortgage contract that includes a provision permitting the lending institution to adjust, upward and downward, the contract’s interest rate in response to changes in money market rates and the conditions of demand for mortgages.

What is a mortgage company? A firm engaged in the business of originating and closing mortgages, which are then assigned or sold to investors.