What are the different types of mortgages?

Alicia, here is the sorting rule nobody hands you: mortgages are categorized by who is willing to buy or hold the loan after you close, not by anything about you. Once you know that, the alphabet soup organizes into four buckets. The five answers above cover the common products well. Let me give you the structure they sit inside, add the categories left out, and answer the question you asked at the end: why the rate changes with the length. Bucket one, conforming. The loan fits Fannie Mae and Freddie Mac rules and stays under the county loan limit, so those agencies will buy it. That is the deepest, most liquid market, so conforming loans usually price best. For 2026 the baseline one-unit conforming limit is $832,750, which covers Ada County and effectively all of Idaho. The lone exception is Teton County on the Wyoming line, at $1,249,125. Bucket two, government insured. FHA, VA and USDA. The government is not lending you money, it is insuring the lender against loss, which is what allows more forgiving credit and down payment rules. For 2026 the FHA one-unit floor is $541,287 and the ceiling is $1,249,125, so most of Idaho sits at the floor. Bucket three, jumbo. The loan exceeds the conforming limit, so the agencies will not buy it and a bank holds it or sells it privately. Since the bank eats the risk, it underwrites harder: bigger down payment, stronger reserves, tighter credit. In Boise, jumbo starts above $832,750. Bucket four, non-QM and portfolio. These are loans a lender holds and underwrites outside the agency rulebook, for borrowers whose income is real but does not fit a W2 box: - Bank statement loans, which qualify a self-employed borrower on deposits instead of tax returns. - DSCR loans for investors, which qualify on the property's rent versus its payment rather than on your personal income. - Asset depletion loans, which convert a liquid portfolio into a calculated monthly income. Expect a higher rate and a larger down payment. That is the price of being underwritten by hand. Two structures cut across all four buckets. Interest only, where you pay no principal for an initial period and the payment jumps when amortization begins. And balloon, where the payment is calculated on a long schedule but the whole balance comes due on a fixed date. Both are legitimate, and both are dangerous without a plan for the reset date. Now your observation, which is a sharp one. Yes, the rate moves with the term, and shorter almost always prices lower. In the Freddie Mac survey for the week of August 6, 2026, the 30-year fixed averaged 6.69 percent while the 15-year averaged 6.01 percent. The reason is duration risk. Whoever buys your loan is locking money up at today's rate. The longer that lock lasts, the more chances there are for rates to rise and strand them in a below market asset. Fifteen years of that exposure earns less compensation than thirty years of it, so the shorter loan prices cheaper. The trap is that a cheaper rate is not a cheaper payment. A 15-year at 6.01 percent carries a much higher monthly payment than a 30-year at 6.69 percent. Lower rate, higher payment, far less total interest. One 2026 note. You asked in early 2024, when the 30-year averaged 6.94 percent. Rates have drifted lower, and every limit above is a 2026 figure that resets each January. I am a real estate professional, not a lender, so ask a licensed Boise loan officer to quote two or three of these side by side on a Loan Estimate. I am Zoltan Peresztegi and I work in Los Angeles, the South Bay and the Palos Verdes Peninsula, so I will not be your Idaho agent. I would be glad to connect you with a strong Treasure Valley agent from my network. Zoltan

There are several types of mortgages, and the best one depends on your financial situation and homeownership goals. The most common loan programs are **Conventional, FHA, VA, and USDA**. Conventional loans are popular for buyers with strong credit, FHA loans are often a good fit for first-time buyers, VA loans are available to eligible veterans and active-duty military members, and USDA loans are designed for qualifying rural areas. You'll also choose between different loan terms, such as **15-year and 30-year fixed-rate mortgages**. A 15-year loan usually has a lower interest rate and helps you pay off your home faster, but the monthly payments are higher. A 30-year loan offers lower monthly payments, though you'll typically pay more interest over the life of the loan. The best way to determine which mortgage is right for you is to speak with a trusted lender who can compare multiple loan options based on your income, credit, down payment, and long-term goals. **Juan Picos** REALTOR® | JohnHart Real Estate Serving Burbank, Glendale & Greater Los Angeles

The biggest split is fixed rate vs. adjustable rate. A fixed rate mortgage locks your interest rate for the life of the loan, so your payment never changes. A 30-year fixed is the most common choice because the payments are lower and predictable. A 15-year fixed pays off faster and usually comes with a lower rate, but the monthly payment is higher. An adjustable rate mortgage, or ARM, starts with a lower fixed rate for a set period, typically 5, 7, or 10 years, and then adjusts annually based on market rates. It can save money upfront but carries risk if rates climb after the fixed period ends. ARMs make the most sense if you know you're moving before the adjustment kicks in. Beyond that, loan type matters too. Conventional loans follow Fannie Mae and Freddie Mac guidelines and are the most common. FHA loans are government-backed and easier to qualify for with lower credit or a smaller down payment. VA loans are for veterans and active military and often require no down payment at all. USDA loans cover rural areas and also offer zero down options for eligible buyers. Your lender can tell you which ones you qualify for based on your situation.

I could go on and on here... For the average consumer you will be looking at Conventional and FHA options with FHA options have lower interest rates but higher up front fees. The qualifying standards for FHA are not as strict as CONV allowing first time home buyers, buyers with lower credit scores or higher debt to incomes to still get qualified. I think the big thing to pay attention to is that 5% and 20% down are the two best options in my opinion. Putting 6%-19% down doesn't change your mortgage payment significanlty enough. That money could be better used in a high yield investment. Of course everyone has different tolerance for leverage (or risk) and that is an important deciding factor.

The most common are fixed-rate FHA, Conventional & VA loans. Fixed-rate means the interest rate never changes over the life of the loan. Most home buyers obtain a 30-yr loan because the monthly payments are much more affordable than a 15 yr loan. If you can afford the monthly payments of a 15 yr loan though, you may be able to secure a lower interest rate and in the end, pay a tremendous amount less for the home vs a 30 yr loan. Best of luck!

There are Conventional, FHA and VA loans that are fix rate and Base off of the Market the FHA are low interest rate than Conventional loan.