Local Loan Officer

Connect with a local loan officer in your area.

Morty works with loan officers around the country to ensure you get the best of all worlds: competitive rates, delightful customer experience and local expertise. To get started, create an account.

Create An Account

What are the different types of mortgages?

When it’s time to choose your loan, one of the most important choices you’ll make is how your mortgage rate is structured. Your rate tells you how much you’ll pay in interest each year on your mortgage. While the differences may feel small, even a tenth of a point can amount to thousands of dollars over the life of your loan.

Rates are typically structured as "fixed or "adjustable." Most – but not all – loan options offer this choice, so it’s important to be aware of your options.

Fixed-rate mortgages

A mortgage with a set interest rate that never changes throughout the life of your loan. Most fixed-rate mortgages have 30-year and 15-year repayment terms. These loans offer buyers a level of consistency that many others do not.

Best for homebuyers who...
want a predictable, lower monthly payment amount that remains for the life of the loan.

Adjustable-rate mortgages (ARMs)

ARMs can be a good option to get a lower upfront rate than a fixed-rate mortgage. After the fixed period, the interest rate on an ARM becomes variable and changes at regular intervals to reflect the most current market conditions.

Best for homebuyers who...
don’t intend to own the property longer than the fixed period, and/or who expect interest rates to decline in the future.

More: The ABCs of ARMs →

Conventional Loans

A conventional loan includes any mortgage type that’s not part of a specific government program such as the FHA, VA or USDA (more on these government-backed loans below). While more cost-effective than other loan options for those who qualify, a conventional loan typically requires that borrowers have a credit score of at least 620, along with a minimum down payment amount.

Government Program Loans

These programs are consstructed for specific groups of people who fit certain criteria, such as veterans or buyers with lower credit scores.

More: Low Down Payment Options? →

FHA
  • Credit scores as low as 500
  • Down payments as low as 3.5%
  • Requires mortgage insurance for the life of the loan

Best for homebuyers who...
have lower credit scores or are not able to make a 20% down payment.

More: Everything you need to know about FHA loans →

USDA
  • Restricted to rural locations
  • Income and property value caps
  • Require no down payment
  • Available for home improvement loans as well

Best for homebuyers who...
live in qualifying rural areas seeking a loan without a down payment.

More: Who qualifies for a USDA loan? →

VA
  • Available to military service members and veterans
  • Requires no down payment and no mortgage insurance
  • Requires a VA funding fee based on the value of the property

Best for homebuyers who...
are qualified military service members looking for lower interest rates or mortgage loans with no down payment.

More: Eligibility requirements for a VA loan →

Non-conforming loan options and investment properties

Mortgage amounts higher than $647,200 (in most areas) are considered "non-conforming, per guidelines laid out by Fannie Mae and Freddie Mac, and will require a jumbo loan. With an investment home, you’ll likely need to put up a larger down payment since mortgage insurance isn’t an option here.

Jumbo
  • Loan limits set annually by the Federal Housing Financing Agency (FHFA).
  • The conforming loan limit is $647,200 in most areas for 2022.
  • The limit is higher in certain parts of the country; check your location using the FHFA loan limit map.

Best for homebuyers who...
are looking to purchase a more expensive property that doesn’t conform to the FHFA’s loan limit.

More: What is a jumbo loan? →

Investment properties
  • An investment property can be a home you plan to improve and sell.
  • It could also be a property you intend to rent out, or a home in an area where you expect values will rise.
  • Financing requirements are typically more stringent than those of a primary residence

Best for homebuyers who...
are purchasing a property for the purposes of generating income, rather than a primary residence home purchase.

More: Vacation homes and investment properties →

mortgage articles

Supporting home buyers around the country

The ins-and-outs of home financing. Learn how your loan selection will impact your monthly payment amount, the difference between 30-year fixed rate mortgage and an ARM mortgage, key mortgage terms and helpful homebuying tips.

View All

Rate and mortgage FAQs

Open Arrow What are today's mortgage rates?

The mortgage rate landscape is ever-changing: rates can update multiple times per day. A variety of factors affect today’s mortgage rates, some of which are outside of your control (like the overall economic outlook) and some that are within your control (like your credit score and type of loan). Influenced heavily by the current state of the market, you wind up with a collection of daily rates that are always subject to change.

Open Arrow What is a mortgage rate lock?

A rate lock protects borrowers from some of the up-and-down nature of interest rates in the market.

With a rate lock, a lender agrees to offer the borrower an exact interest rate for a set window of time. If the market interest rates go up, the rate you’re being offered for your mortgage will remain steady, at least for the time frame specified by your lender. While lock periods typically range between 30-60 days, Morty also offers 75-, 90-, and 180-day locks.

Open Arrow What is a mortgage discount point?

Mortgage discount points are fees paid by you toward the lender, increasing closing costs in order to reduce the interest rate on the loan. Each “point” you buy costs 1% of the total mortgage amount and typically lowers the mortgage rate by .25%, resulting in a lower monthly bill over the life of the loan and lower interest paid.

Open Arrow What is a mortgage lender credit?

The opposite of discount points, lender credits are when you take on a higher interest rate for additional money from the lender that will help offset your closing costs. They’re calculated the same way as discount points, but appear as a “negative” point on your loan, since you’re getting money from the lender rather than paying more to them. While credits help you pay less in closing costs upfront, accepting them will also increase your monthly mortgage payment.

Open Arrow What is the lowest 30-year mortgage rate?

The lowest 30-year mortgage rate for you may vary on a day-to-day basis, based on a number of market factors and benchmarks, including activity from the Federal Reserve, the bond market, inflation, and the overall health of the economy. Lenders can update their rates every day. Just because one lender has the lowest rate for you on a given day doesn’t guarantee that they’ll also have the lowest rate for you the next day.

A quick, simple way to check today’s lowest 30-year mortgage rates is via this rates tool, which is updated daily.

Open Arrow Are mortgage rates expected to drop?

The short, unsatisfying answer: it depends. Current forecasts don’t suggest rates are likely to fall significantly in the near future. That said, high levels of volatility within the market mean that rates could indeed drop week-to-week, even over the course of a several month span during which rates rise overall. Checking regularly is the best way to stay up-to-date.

Open Arrow What are the advantages to choosing an online mortgage provider over a local lender?

While a local lender may offer a longstanding history of operation, online mortgage providers bring their own suite of advantages to the table. Compared to local lenders, online providers have access to a much wider network of potential lenders, allowing you to compare more options and further ensure you’ve found the right loan for you. Online lenders also offer streamlined web-based platforms, which simplify the mortgage process by allowing you to track every step of your loan in one place. This same platform advantage can even save you time by making it quicker and easier to get pre-approved and apply for a loan.

Interested in becoming a mortgage loan officer?

Join Morty! We are always looking to bring on enthusiastic loan officers! If you're new to mortgage, or looking to add new states to your MLO license, check out our state-by-state mortgage licensing guides or quick link to specific state licensing requirements below.

Editorial Disclaimer:
All content on this page is intended to be strictly educational, unbiased information for potential homebuyers. Every financial situation is unique, and we do not offer financial advice. We recommend individuals perform their own due diligence and research when choosing a lender or making any major financial decision. To the best of our knowledge, all content is accurate as of the date posted, though commentary related to the market is always subject to change. The opinions expressed are the author’s alone.