When purchasing a mortgage, one of the first decisions to make is the type of product that suits your needs. In today's interest rate environment, the 15-year fixed-rate mortgage (FRM) has the lowest interest rate at 6.16%, followed by the 5/1 adjustable-rate mortgage (ARM) at 0.0%, and the 30-year FRM at 6.74%.
To determine which loan is suitable for you, consider your personal financial situation and prospects. The 15-year FRM is amortized over 180 months, resulting in higher monthly payments but lower lifetime interest expenses. In contrast, the 30-year FRM is amortized over 360 months, leading to lower monthly payments but higher lifetime interest expenses. On the other hand, an ARM is a type of mortgage in which the interest rate applied to the outstanding balance varies throughout the loan's life. The initial interest rate is fixed for a period, and afterward, the interest rate resets periodically, at yearly or even monthly intervals. The 5/1 ARM has a fixed rate for five years.
Pureloan provides a powerful tool that enables you to research mortgage rate trends for your personal situation. The interactive chart above displays comprehensive and accurate mortgage analyses based on your criteria. It not only shows mortgage rates for different loan types from the top banks, with the nationwide average as reference, but also ranks loan popularity by bank and loan type.