Compare Mortgage Rate Types

It depends on your financial goals. A 15-year mortgage has lower total interest and builds equity faster, but requires higher monthly payments. A 30-year gives you lower payments and more cash-flow flexibility. Choose based on your budget and how long you plan to stay.

A 5/1 ARM has a fixed rate for the first 5 years, then adjusts annually based on market conditions. It's less risky if you plan to sell or refinance within 5-7 years. The initial rate is typically lower than fixed-rate options, but your payment could increase after the fixed period ends.

On a $320,000 loan, the difference in total interest paid can be $100,000 or more over the life of the loan. The exact savings depend on current rates, but the 15-year option always saves significantly on total interest.

Yes, through refinancing. If rates are favorable and your financial situation has improved, refinancing from a 30-year to a 15-year can accelerate your payoff and reduce total interest. NMHL can help you evaluate whether this makes sense.

Most first-time buyers choose the 30-year fixed for its predictable, lower monthly payments. This gives you breathing room as you adjust to homeownership costs. You can always refinance to a shorter term later.

Not necessarily. ARM rates adjust based on a benchmark index plus a margin. If market rates have fallen when your ARM adjusts, your rate could actually decrease. However, most ARMs have rate caps that limit how much your rate can change per adjustment period and over the life of the loan.