The major loan-structure decisions
When you buy a home, you'll face three big decisions that shape your mortgage. Each one has real consequences for your monthly payment, total interest paid, and qualifying flexibility:
- Term length: 15 years vs 30 years — or somewhere in between
- Rate structure: Fixed-rate vs adjustable-rate (ARM)
- Loan program: Conventional vs FHA vs other government-backed options
These decisions interact. A 15-year FHA loan looks very different from a 30-year ARM in conventional. The guides below cover each decision in depth with worked examples.
The biggest mistake most buyers make
The most common (and most expensive) mistake is choosing a mortgage based on monthly payment alone without considering total cost over the life of the loan. A loan with a slightly lower monthly payment but significantly higher long-term cost can quietly cost tens of thousands of dollars more over time.
The right approach is to evaluate three numbers together:
- Monthly payment — can you comfortably afford it without sacrificing retirement, emergency fund, or other priorities?
- Total interest over the loan life — what's the true cost across the full term?
- Qualifying requirements — can you actually get approved at the terms you want?
The right loan isn't the one with the lowest payment. It's the one that fits your specific situation: income stability, time horizon in the home, financial priorities, and credit profile.
Guides in this topic
Each guide goes deep on one specific mortgage decision. They're meant to be read independently, but they cross-reference each other where comparisons help.
More home purchase topics coming
We're working on additional guides covering mortgage pre-approval, USDA and VA loans, closing costs, rate locks, and the buying process itself. Let us know what you'd like us to cover next.