Overwhelmed by mortgages? Don’t sweat it. Here are some tools to help make it a little easier.
Here’s a look at some common mortgage types to help you see which loan is right for you.
| Loan type | Best for | Current avg. APR | Min. down payment* | More details |
|---|---|---|---|---|
| 30-Year Fixed | Low monthly payments that won’t change | 7.11% | 3.0% | 30-year fixed is the most common mortgage type |
| 15-Year Fixed | Paying loan off faster (vs 30-year loans) | 6.27% | 3.0% | Payments are higher, but much less interest is paid over time vs 30-yr loans |
| 7/1 ARM | Those who might sell within 7 years | 6.29% | 3.0% | After 7 years, interest rate & mo. payment can change annually |
| 5/1 ARM | Those who might sell within 5 years | 6.13% | 3.0% | After 5 years, interest rate & mo. payment can change annually |
| FHA 30-Year Fixed | Those with lower credit scores | 7.55% | 3.5% | Mortgage insurance is required (upfront fee & mo. insurance premium) |
| VA 30-Year Fixed | Qualifying veterans and active military | 6.65% | 0.0% | PMI is not required for VA loans, but there may be a VA funding fee |
| Jumbo 30-Year Fixed | Those purchasing high-priced homes | 0.00% | Varies | Jumbo loans are for loan amounts that exceed conventional loan limits |