Answer
Six widely used mortgage types are conventional fixed-rate, adjustable-rate (ARM), FHA, VA, USDA, and jumbo loans. Conventional fixed-rate loans offer stable payments over the life of the loan, while ARMs start with a lower fixed period and then adjust based on a benchmark index. FHA loans are backed by the government and allow low down payments and flexible credit; VA loans provide favorable terms to eligible service members; USDA loans support rural buyers; and jumbo loans cover amounts above conforming limits.
Mortgagepaymentcalculator.com assists by letting you test different loan amounts, rates, and terms typically associated with these products so you can compare costs and affordability.
To compare monthly payments across loan types (especially fixed vs ARM and conforming vs jumbo), start with our mortgage payment calculator.
Quick breakdown of the 6 mortgage types
1) Conventional fixed-rate
The interest rate stays the same for the full term (often 15 or 30 years), which keeps principal-and-interest payments predictable.
2) Adjustable-rate mortgage (ARM)
Starts with a fixed period (like 5/1 or 7/1) and then adjusts periodically. Lower initial payments can be appealing, but you should plan for possible increases later.
3) FHA
Government-backed financing with more flexible credit guidelines and low down-payment options, often used by first-time buyers.
4) VA
For eligible service members, veterans, and some surviving spouses. Often offers strong terms and can reduce the need for a large down payment.
5) USDA
Designed for certain rural and eligible areas and borrowers who meet program requirements. Can be a pathway to low down-payment financing in qualifying locations.
6) Jumbo
Loans above conforming limits. Because the amounts are larger, qualification standards and pricing can differ from conforming conventional loans.
Even within these categories, the “best” option depends on your down payment, credit profile, income documentation, and how long you expect to keep the home and the loan.
How to choose the right mortgage type
The most practical approach is to compare the all-in monthly payment and the risk of future payment changes (especially with ARMs), then sanity-check affordability against your overall homebuying plan.