List of Various US Mortgages and Their Interest Rates

In the U States, there are several types of mortgages available, each with its own set of terms, interest rates, and requirements. The rate you can get will depend on factors like your credit score, the type of loan, your down payment, and the lender you choose. As mortgage rates fluctuate with market conditions, it’s essential to check for the most up-to-date rates before applying.

1. Fixed-Rate Mortgages

Overview: A fixed-rate mortgage offers a consistent interest rate and monthly payments that remain the same for the entire term of the loan (typically 15, 20, or 30 years).
Best for: Homebuyers who want predictable payments and long-term stability.
Interest Rates (as of March 2025):
- 30-Year Fixed: 6.5% to 7.5%
- 15-Year Fixed: 5.5% to 6.5%
- 20-Year Fixed: 6.0% to 7.0%
Pros:
- Predictable monthly payments.
- Stability for long-term planning.
Cons:
- Typically higher interest rates than adjustable-rate loans.

2. Adjustable-Rate Mortgages (ARMs)

Overview: An adjustable-rate mortgage (ARM) offers a lower initial interest rate that adjusts periodically based on market conditions. The initial rate is usually fixed for a specific period (e.g., 5, 7, or 10 years) and then can change annually.
Best for: Borrowers who plan to sell or refinance before the adjustable period kicks in or those who can handle payment fluctuations.
Interest Rates (as of March 2025):
- 5/1 ARM (5 years fixed, then adjusts annually): 5.0% to 6.0%
- 7/1 ARM (7 years fixed, then adjusts annually): 5.25% to 6.25%
- 10/1 ARM (10 years fixed, then adjusts annually): 5.5% to 6.5%
Pros:
- Lower initial interest rates.
- Potential savings in the early years.
Cons:
- Interest rates can increase after the fixed period, leading to higher payments.
- More risk if you plan to stay long-term.

3. FHA Loans (Federal Housing Administration Loans)

Overview: FHA loans are government-backed loans designed for first-time homebuyers and those with lower credit scores or limited savings for a down payment. They require lower down payments, typically as low as 3.5%.
Best for: First-time buyers or those with lower credit scores (typically 580 and above).
Interest Rates (as of March 2025):
- 30-Year Fixed FHA Loan: 6.0% to 7.0%
- 15-Year Fixed FHA Loan: 5.25% to 6.25%
Pros:
- Low down payment requirements.
- Easier to qualify with lower credit scores.
Cons:
- Mortgage insurance premiums (MIP) are required.
- Loan limits apply based on location.

4. VA Loans (Veterans Affairs Loans)

Overview: VA loans are available to current and former military service members, as well as their spouses. These loans often do not require a down payment or private mortgage insurance (PMI).
Best for: Veterans, active military members, and their families.
Interest Rates (as of March 2025):
- 30-Year Fixed VA Loan: 6.25% to 7.0%
- 15-Year Fixed VA Loan: 5.5% to 6.0%
Pros:
- No down payment required.
- No mortgage insurance (PMI) required.
- Competitive interest rates.
Cons:
- Only available to eligible military service members and their families.
- A VA funding fee may apply.

5. USDA Loans (United States Department of Agriculture Loans)

Overview: USDA loans are designed for low- to moderate-income buyers in rural or suburban areas. These loans often do not require a down payment and have lower interest rates.
Best for: Homebuyers purchasing in designated rural or suburban areas who meet income eligibility requirements.
Interest Rates (as of March 2025):
- 30-Year Fixed USDA Loan: 6.0% to 7.0%
- 15-Year Fixed USDA Loan: 5.5% to 6.0%
Pros:
- No down payment required.
- Lower interest rates compared to conventional loans.
Cons:
- Strict eligibility based on location and income.
- Not available for urban areas.

6. Conventional Loans

Overview: Conventional loans are not insured or guaranteed by the federal government. They typically require a higher credit score (usually 620 or above) and a larger down payment (usually 5% to 20%).
Best for: Buyers with good credit and sufficient down payment.
Interest Rates (as of March 2025):
- 30-Year Fixed Conventional Loan: 6.5% to 7.5%
- 15-Year Fixed Conventional Loan: 5.5% to 6.5%
Pros:
- More flexible terms and loan amounts.
- Potential to avoid mortgage insurance with a 20% down payment.
Cons:
- Higher credit score and down payment requirements.
- May require private mortgage insurance (PMI) if the down payment is less than 20%.

7. Jumbo Loans

Overview: Jumbo loans are for homebuyers who need to borrow amounts that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These loans are typically used to purchase higher-value homes.
Best for: Buyers purchasing high-value properties that exceed the conforming loan limits.
Interest Rates (as of March 2025):
- 30-Year Fixed Jumbo Loan: 6.5% to 7.5%
- 15-Year Fixed Jumbo Loan: 5.5% to 6.5%
Pros:
- Higher loan limits for purchasing more expensive homes.
- Flexible terms and conditions.
Cons:
- Stricter qualification requirements, including a higher credit score and larger down payment.
- Higher interest rates compared to conforming loans.

8. Interest-Only Mortgages

Overview: With an interest-only mortgage, the borrower pays only the interest for a set period (usually 5 to 10 years), after which they begin to pay both principal and interest. These are often adjustable-rate mortgages (ARMs).
Best for: Borrowers who expect to sell or refinance the property before the interest-only period ends, or those who want lower initial payments.
Interest Rates (as of March 2025):
- Rates vary, typically similar to ARMs: 5.5% to 7.0% (for 5/1 ARM).
Pros:
- Lower monthly payments in the early years.
- Useful for those who expect to sell or refinance within the interest-only period.
Cons:
- Payments increase significantly after the interest-only period ends.
- Potentially higher long-term costs.

9. Home Equity Loans & Home Equity Lines of Credit (HELOCs)

Overview: A home equity loan or HELOC allows homeowners to borrow against the equity in their home. These are typically used for home improvements, debt consolidation, or major expenses.
Best for: Homeowners who have significant equity in their homes and need extra funds for a large project or expense.
Interest Rates (as of March 2025):
- Home Equity Loans: 6.0% to 7.5%
- HELOCs: 6.5% to 8.5%
Pros:
- Lower interest rates compared to personal loans.
- Can access a large amount of money based on home equity.
Cons:
- Risk of foreclosure if you fail to repay.
- Rates can be higher for HELOCs, especially if they are adjustable.

Conclusion:

Mortgage rates can fluctuate due to market conditions, the Federal Reserve's interest rate policies, and other economic factors. The rates provided above are estimates as of March 2025 and may change based on your location, credit score, and other factors. Always shop around and get multiple quotes from lenders to find the best mortgage option for your financial situation.