Underwriting
Lending & MortgagesThe process lenders use to evaluate a borrower's creditworthiness and the risk of lending to them.
Example
Example: Suppose you take out a $300,000 30-year fixed mortgage at 6.5%. Understanding underwriting helps you see how your monthly payment of approximately $1,896 is structured — and how this concept affects your total cost over the life of the loan. Use our mortgage calculator to see how underwriting impacts your specific situation.