Mortgage Rates

Lenders take on less risk over a shorter time horizon — there's less exposure to future rate and economic swings, and the loan is paid off faster. That lower risk gets priced in as a lower rate, though the tradeoff is a meaningfully higher monthly payment for the same loan amount.

The rate is fixed for the first 5 years, then adjusts annually (the "1") based on a market index plus a margin. The initial rate is often lower than a 30-year fixed as a tradeoff for taking on the risk that your rate — and payment — could rise after that fixed period ends.

The government guarantee behind FHA loans lowers the lender's risk, which can put the base rate close to or even below a conventional rate despite FHA's looser credit and down payment requirements. That said, FHA adds its own mortgage insurance premium on top, which often makes the true monthly cost higher — see the FHA Calculator for the full picture.

These are indicative averages — your actual rate depends on credit score, down payment, loan amount, property type, and whether you pay points to buy the rate down, plus which lender you use. Treat this table as a starting reference for comparing loan types, not a personal quote.