LokelList · September 17, 2026

Loan type vs. interest rate: which matters more?

Mortgage Market Update

My Mortgage Company

LokelList

Thursday, September 17, 2026

Loan type vs. interest rate: which matters more?

Hi there. This week I want to tackle something that doesn't get enough attention when people are mortgage shopping.

National Mortgage Rates · September 10, 2026

Conventional 30-Year

6.76%

FHA 30-Year

6.82%

VA 30-Year

6.71%

Rate trend

Source: Freddie Mac PMMS & Optimal Blue via FRED

Rates shown are national averages and are provided for informational purposes only. Actual rates vary based on credit profile, loan amount, and market conditions. Please contact us for a personalized rate quote.


Mortgage Basics

Why your loan type matters more than you think

When you're shopping for a mortgage, the interest rate gets most of the attention—but your loan program is equally important. The difference between a fixed-rate loan, an adjustable-rate loan, or a specialized program can shape your monthly payment, long-term costs, and peace of mind for years. Each has tradeoffs. A fixed rate locks in stability; adjustable rates may start lower but can change. Some programs offer flexibility for self-employed borrowers or smaller down payments. Understanding which program fits your situation—not just the rate—means you're making a choice you can actually live with. I'm happy to walk you through how different loan types work and what might make sense for where you are right now.

Let's talk about which loan program fits your goals.

Tip of the Week

Replace weatherstripping around exterior doors every few years. It's one of the cheapest ways to improve energy efficiency.

Tips for Homeowners

USDA Loans: A Zero-Down Option for Rural Buyers

1.

USDA loans offer 100% financing (no down payment) for eligible properties in USDA-designated rural and suburban areas. The USDA's eligibility map may include areas closer to cities than you'd expect.

2.

USDA loans have income limits — typically 115% of the area median income. Both the property location and borrower income must qualify.

3.

There's an upfront guarantee fee (1% of the loan) and an annual fee (0.35% of the balance). These are lower than FHA mortgage insurance and can be rolled into the loan.

Have questions about how any of this affects your mortgage or home purchase? We're here to help — reach out to the My Mortgage Company team any time and we'll walk you through your options.

Your Mortgage Advisor

M

My Mortgage Company

LokelList

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