Mortgage Basics
Learning Center Stage 4 — Understand Mortgage Options
Loans are tools, and the right one depends on your down payment, credit, and how long you plan to stay in the home. Conventional loans are the most common and offer flexible terms but typically require stronger credit. FHA loans suit smaller down payments or lower scores. VA loans offer eligible veterans zero down with competitive terms. USDA loans help buyers in eligible rural areas.
You'll also choose between a fixed-rate mortgage, which keeps the same payment for the life of the loan, and an adjustable-rate mortgage (ARM), which starts lower but can change later. Fixed rates offer predictability; ARMs can make sense if you expect to move or refinance before the rate adjusts.
Always compare loans by APR and total cost, not just the interest rate — a lower rate with high fees can cost more over time than a slightly higher rate with low fees. Ask a lender to model two or three options so you're comparing real numbers, not just headlines.