Which loan is right for me?

The lifestyle situations below can help you decide which loan you might want to consider.

“Getting the lowest monthly payment is most important to me, and I’ll be in my home for less than five years”

  • An intermediate ARM (five years or longer) if your income is fixed or expected to decline
  • A short-term ARM (three years or less) is you expect your income to increase

“Getting the lowest monthly payment is most important to me, and I’ll be in my home for more than five years.”

  • A fixed-term mortgage (for example, 30-year fixed)
  • An intermediate ARM if you expect your income to keep increasing

“I have little money saved for a down payment.”

  • An FHA loan
  • A VA loan, if you are a veteran

“I have no traditional credit references (for example, car loan or credit cards) but I pay my rent and other bills on time.”

  • An FHA loan
  • A VA loan, if you are a veteran

“Paying off my mortgage faster and saving money by paying less interest long-term is what’s most important to me.”

  • A shorter-term mortgage, such as a 15- or 20-year fixed-rate loan.
  • A biweekly 30-year mortgage accelerates the reduction in principal by applying more than one extra payment a year, reducing the total interest and term of the loan.