Buying a new home is one of the largest purchases you will likely ever make, so be smart about which home loan and terms you choose. Keep your monthly payments low and your budget in check by finding the lowest mortgage rates.
A fixed-rate mortgage (FRM) loan, also known as a traditional mortgage, is a loan with an interest rate that remains fixed for the life of the loan. Adjustable rate mortgage (ARM) interest rates adjust as mortgage rates fluctuate at regular intervals. Hybrid mortgage loans are a relatively new among mortgage lenders, and their terms fuse the benefits of a fixed mortgage and an ARM.
You’ll need to have a down payment — typically 20 percent of the home price — before consulting a mortgage lender. A larger down payment might enable you to get a more competitive mortgage interest rate, which can lead to more savings.