US Mortgages (2026)
30-yr vs 15-yr, FHA / VA / USDA, refinance — with a payment calculator.
The US average 30-year fixed mortgage rate sits at 6.8% in April 2026 (Freddie Mac PMMS) — down from the 7.8% peak in late 2023 but still well above the sub-4% rates that defined 2020–2021. On a $400k loan, each 1% of rate is roughly $260/month. Choosing the right loan type, locking the rate at the right moment, and understanding closing costs can save tens of thousands over the life of the loan. Below: loan types, payment calculator, and the traps that catch first-time buyers.
Mortgage payment calculator
Principal, interest, and — if you tick escrow — taxes and insurance. Run 30-year and 15-year side by side.
US mortgage types
| Type | Down payment | FICO min | Mortgage insurance | Best for |
|---|---|---|---|---|
| Conventional | 3% min, 20% to avoid PMI | 620 | PMI if <20% down | Good credit, 5%+ down |
| FHA | 3.5% | 580 (or 500 w/ 10% down) | MIP for life of loan if <10% down | First-time buyers, fair credit |
| VA | 0% | Lender-dependent (often 620+) | No PMI; VA funding fee ~2.3% | Veterans, active-duty military |
| USDA | 0% | 640 | Guarantee fee (1% upfront, 0.35% annual) | Rural areas, income <115% AMI |
| Jumbo | 10–20% | 700+ | Varies by lender | Loans above $806,500 (2025 limit) |
30-year vs 15-year on $400k at today's rates
| 30-year @ 6.8% | 15-year @ 6.1% | |
|---|---|---|
| Monthly P&I | $2,608 | $3,399 |
| Total paid | $939k | $612k |
| Total interest | $539k | $212k |
Watch out for
- ARM reset shock. 5/1 and 7/1 adjustable-rate mortgages offer a lower intro rate, but when the adjustment kicks in rates can jump 3%+ in a single year. Only use an ARM if you're certain you'll sell or refinance before the reset.
- Teaser rates. A lender quoting 0.5% below the market usually buys it with discount points priced into the quote. Compare APR, not just interest rate.
- Escrow shocks. Property taxes and insurance can rise sharply. Your monthly payment can jump $200–$400 with no warning when escrow analysis happens.
Questions answered
As of April 2026, the 30-year fixed averages 6.8% and the 15-year fixed averages 6.1% (Freddie Mac Primary Mortgage Market Survey). Jumbo loans run roughly 0.25% higher; FHA about 0.1% lower; VA similar to conventional. Rates move with the 10-year Treasury and Fed policy — expect volatility through 2026.
30-year: lower monthly payment, much more total interest over the loan. 15-year: higher monthly payment (about 40%), but half the interest paid over the loan. On a $400k loan at 6.8% vs 6.1%: 30-yr total interest ~$539k vs 15-yr ~$207k — a $332k difference. If cash flow allows 15-year, it's usually the better choice.
Conventional: 620 minimum, 740+ for best rates. FHA: 580 minimum (or 500 with 10% down). VA: no official minimum but most lenders want 620+. USDA: 640+. Jumbo: 700+ typically. Each 20-point improvement above 620 saves meaningful APR.
FHA: 3.5% down minimum, 580+ FICO, requires mortgage insurance (MIP) for life of the loan if less than 10% down. VA: 0% down for qualifying veterans, no PMI, VA funding fee (~2.3% first use). USDA: 0% down for rural properties, income limits apply. Conventional: 3%+ down; PMI required if under 20% but drops off automatically.
Private Mortgage Insurance is required on conventional loans with less than 20% down, protecting the lender if you default. Typical cost: 0.3%–1.5% of loan annually, added to your monthly payment. PMI drops off automatically at 78% LTV (22% equity) and can be removed earlier with an appraisal showing you've reached 20% equity.
One-time fees to close a mortgage, typically 2%–5% of the loan amount. Include: lender origination (0.5%–1%), appraisal ($500–$800), title insurance (0.5%–1%), recording/transfer taxes (varies by state), prepaid escrow (taxes and insurance), credit report, survey. On a $400k loan: $8,000–$20,000.
Discount points cost 1% of the loan for each point and typically reduce your rate 0.25%. Break-even is roughly 5–7 years. Worth it if you're certain you'll stay that long without refinancing; not worth it if you might move or refi within 5 years.
Pre-qualified: soft check, informal estimate of what you might qualify for. Pre-approved: hard credit pull, full documentation review, lender commits (subject to property) to a specific loan amount. Most sellers require pre-approval with an offer, not pre-qualification.
When the rate drop is at least 0.75% AND you'll stay in the home long enough to recoup closing costs (typically 3–7 years). A cash-out refinance to consolidate higher-APR debt can make sense even at slightly higher rates if total interest falls.
Agreement from your lender to hold your interest rate for a specified period (30, 45, 60, 90 days) while you complete closing. If rates rise during the lock, you're protected; if they fall, you may be able to renegotiate (or 'float down'). Longer locks cost more.