How do I choose the right mortgage type?

Choosing the right mortgage depends on your financial goals, how long you plan to stay in the home, your down payment, and eligibility for special programs. Use our comparison tool and quiz to find your best fit.

What are the main differences between fixed and adjustable-rate mortgages?

Fixed-rate mortgages have the same interest rate for the life of the loan, while adjustable-rate mortgages (ARMs) start with a lower rate that can change after a set period.

Mortgage Comparison Tool

Financial Education Series

June 15, 2025

Compare Major Mortgage Types

Not sure which mortgage is right for you? Use our comparison table and quick quiz to find the best fit for your needs.

Why Compare Mortgage Types?

The right mortgage can save you thousands. Comparing your options helps you make an informed, confident decision.

Mortgage Type Comparison Table

Type	Best For	Pros	Cons
30-Year Fixed	Long-term buyers wanting stability	Predictable payments Lower monthly payment	Higher total interest Slower equity build
15-Year Fixed	Buyers who can afford higher payments and want to save on interest	Lower total interest Faster equity build	Higher monthly payment
5/1 ARM	Short-term buyers or those expecting to refinance	Lower initial rate Potential savings if moving soon	Rates can rise Uncertainty after fixed period
FHA Loan	First-time buyers or those with lower credit	Low down payment Flexible credit requirements	Mortgage insurance required Loan limits apply
VA Loan	Eligible veterans, active-duty, or surviving spouses	No down payment No mortgage insurance	Must be eligible veteran/military Funding fee applies
USDA Loan	Buyers in eligible rural areas	No down payment Low mortgage insurance	Rural areas only Income limits apply

Find Your Best Fit: Quick Quiz

Answer the questions above to see your recommended mortgage type.

Next Steps

Want to dive deeper? Explore our full guide on Mortgage Types or use our Payment Calculators to estimate your costs.