What is the difference between a 30-year and 15-year mortgage?

A 30-year mortgage has lower monthly payments but you pay more total interest over the life of the loan. A 15-year mortgage has higher monthly payments but significantly less total interest and you build equity faster. For example, on a $300,000 loan at 7%, the 30-year payment is about $1,996/month (total interest: $418,527) versus $2,696/month for 15-year (total interest: $185,367).

How much down payment do I need for a house?

The minimum down payment depends on the loan type: FHA loans require 3.5% (with credit score 580+), conventional loans can go as low as 3% (Fannie Mae HomeReady or Freddie Mac Home Possible), VA loans and USDA loans offer 0% down for eligible borrowers. However, putting down 20% or more avoids PMI (Private Mortgage Insurance) which saves money monthly.

What is PMI and how can I avoid it?

PMI (Private Mortgage Insurance) is required on conventional loans when your down payment is less than 20%. It typically costs 0.5% to 1.5% of the loan amount per year. You can avoid PMI by: putting 20% down, using a VA or USDA loan, choosing lender-paid PMI (higher rate), or requesting PMI removal once you reach 20% equity. PMI automatically cancels at 22% equity.

Should I choose a fixed-rate or adjustable-rate mortgage (ARM)?

A fixed-rate mortgage keeps the same interest rate for the entire loan term, providing payment stability. An ARM (like a 5/1 ARM) offers a lower initial rate for a set period (5 years), then adjusts annually based on market rates. Choose fixed-rate if you plan to stay long-term and want predictability. An ARM can save money if you plan to sell or refinance within the initial fixed period.

Mortgage Rates 2026

Compare home loan rates from top lenders. 30-year fixed, 15-year, ARM, FHA, and VA loans.

Current Mortgage Rates

National averages as of January 2026

Loan Type	Rate	APR	Best For
30-Year Fixed	6.75%	6.85%	Lower monthly payments
15-Year Fixed	5.95%	6.10%	Pay off faster, save on interest
5/1 ARM	6.25%	7.10%	Planning to move in 5-7 years
FHA Loan	6.50%	7.25%	Lower credit score, 3.5% down
VA Loan	6.25%	6.40%	Veterans, 0% down
Jumbo Loan	7.00%	7.15%	Loans over $766,550

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Mortgage Types Explained

30-Year Fixed

Most popular option. Fixed rate for 30 years, lowest monthly payment but more interest over time.

15-Year Fixed

Higher monthly payment but you'll save tens of thousands in interest and own your home faster.

ARM (Adjustable Rate)

5/1 ARM means fixed rate for 5 years, then adjusts annually. Good if you plan to move before adjustment.

FHA Loan

Government-backed, allows 3.5% down and lower credit scores. Requires mortgage insurance (MIP).

VA Loan

For veterans and active military. No down payment, no PMI. Best deal if you qualify.

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