A purchase mortgage is a loan used to buy a home, with the property itself serving as collateral. Most buyers choose between a fixed-rate mortgage, where the interest rate stays the same for the life of the loan, and an adjustable-rate mortgage (ARM), where the rate is fixed for an initial period and then changes on a set schedule. Loan terms commonly run 15 or 30 years, though other options exist.
Because a mortgage is usually the largest debt most households take on, the two factors that matter most are the interest rate and the total cost of closing. Closing costs typically include lender fees, third-party charges such as appraisal and title work, and points paid to reduce the rate. A lower rate can be offset by high closing costs, so comparing the full picture is more useful than focusing on the rate alone.
On this page, compare purchase mortgages side by side on rate, loan term, closing costs, and whether the product is fixed or adjustable. Doing so makes it easier to see which option best fits your budget and how long you expect to stay in the home.
