Mortgage Loan Options

Exploring Your LOAN OPTIONS

A 30-year fixed rate loan is the most common loan choice and a good choice for many people, but it’s not the only kind of loan available. Depending on your circumstances and goals, you might also want to see if there are other choices that may fit your needs.

Set Your Goals

Triangle Icon Gain a basic understanding of your loan options and how they work

Triangle Icon Get a sense of current interest rates and how they will affect you

Triangle Icon Determine the amount of your down payment

Triangle Icon Obtain a pre-approval from a Utah mortgage broker

Triangle Icon Shop and find your dream home


Learn About Different Loan Options

Learn about different types of mortgage loans in Utah, such as conventional, FHA, or VA. Decide which loan best fits your needs, a fixed rate mortgage or an adjustable rate mortgage. Is a shorter term or a longer loan term better for you and your goals?

Get a Sense for Current Interest Rates

Talk to your Utah mortgage broker about mortgage rates to learn what you may expect to pay, and how different loan options affect rates. For example, you might compare a 30-year fixed rate mortgage against a 15-year fixed rate mortgage to see how the interest rates compare.

Start Looking at Homes and Explore Loan Choices at the Same Time

You may have already started looking at homes, or you may prefer to explore your loan choices a bit first before getting started looking at new homes.

However, don’t wait until you’ve found a home before you start thinking about your loan options. You want to have a good idea of what kind of mortgage loan is right for you before you make an offer on a new home.

Your Down Payment Amount Affects Your Loan Options

Many homebuyers choose to put less than 20% down. When you put less than 20% down, you will likely need to pay for mortgage insurance. Mortgage insurance adds to your monthly payment and in some cases your loan costs, but it allows you to get a loan you might otherwise be unable to get. Mortgage insurance protects the lender if you fall behind on your payments, which means lenders are more willing to lend to you. Mortgage insurance doesn’t protect you or pay your mortgage for you. Learn more about mortgage insurance and how it works.

Options for Less than 20% Down Payment

Down Payment Assistance Programs

Many local cities or counties have down payment assistance grant funds available for first-time homebuyers with low to moderate income.