1. Loan type
Conventional
Not insured by a federal housing agency. Requirements and mortgage-insurance treatment depend on the selected conforming or non-conforming program.
Government-backed
FHA, VA and USDA programs serve different borrowers and properties. They have agency rules, fees or insurance features in addition to lender underwriting.
Specialized
Jumbo, bank-statement, DSCR, renovation, construction, home-equity and other programs may address needs not covered by a standard conforming loan.
2. Repayment term
| Shorter term | Longer term |
|---|---|
| Usually higher monthly principal and interest | Usually lower monthly principal and interest |
| Often a lower rate | Often a higher rate |
| Typically less total interest if held to payoff | Typically more total interest if held to payoff |
| Builds equity faster | Provides more monthly-payment flexibility |
3. Interest-rate structure
Fixed rate
The rate and scheduled principal-and-interest payment do not change. Taxes, insurance, mortgage insurance and other components of the total payment may still change.
Adjustable rate
The rate is generally fixed for an initial period and can then change under the note’s index, margin, adjustment schedule and caps. Model the maximum possible payment, not only the starting payment.
Compare the complete cost
A lower rate does not always mean a lower-cost loan. Compare points, lender credits, origination fees, mortgage insurance, third-party costs, prepayment features, the time you expect to keep the loan and how much cash you must bring to closing.
Personal guidance
Want to discuss how this applies to you?
Greg can help you compare current loan options, documentation, costs and timing for your property and financial goals.
This educational summary was prepared from the referenced official material and reviewed on September 13, 2026. Program rules, limits and eligibility can change. Your lender’s current underwriting requirements and official disclosures control.