Which Mortgage Is Right for You?
Money Girl
Macmillan Holdings, LLC
4.6 • 1.8K Ratings
🗓️ 22 May 2026
⏱️ 17 minutes
🧾️ Download transcript
Summary
1021. Looking for a mortgage but are unsure what’s best for you? Laura answers a question from a listener who’s ready to buy a home but is overwhelmed by mortgage choices. Find out whether a fixed- or adjustable-rate loan, with or without mortgage points, is right for you.
Key Takeaways:
- Fixed-rate mortgages are popular because they lock in a rate, providing financial stability no matter what happens in the economy.
- Adjustable-rate mortgages (ARMs) can be good when interest rates are high, you don’t expect to own your home for the long term, or you can pay it off early.
- Conventional loans are the most common type of mortgage because they’re backed by federal agencies, reducing risk for lenders.
- Jumbo loans are high mortgage amounts that aren’t federally-backed and typically require stricter qualifying criteria by lenders.
- There are various loans backed by the federal government, including FHA, VA, and USDA products, that come with lenient underwriting standards, making homeownership more affordable.
- Buying mortgage points allows you to get a lower interest rate, which saves money if you own the property past the breakeven point.
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Transcript
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| 0:00.0 | A listener named Linda wrote in and asked, |
| 0:08.8 | I've been saving money to buy my first home, and I think I'm ready to look at getting a mortgage. |
| 0:14.6 | But there are so many different loan options. |
| 0:17.4 | I'm unsure which one is right for me. |
| 0:19.3 | Can you explain how to shop for a mortgage and whether |
| 0:23.1 | paying points for a lower interest rate is a good idea? Thank you so much for the question, |
| 0:29.6 | Linda, and congratulations on being ready to jump into home ownership. Saving up for a home |
| 0:34.9 | down payment is no small feat, so I'm sending you a virtual high five. |
| 0:41.3 | Shopping for a mortgage is important because a slight difference in your interest rate or your |
| 0:46.4 | loan terms can significantly mean saving or losing tens of thousands of dollars over the life of |
| 0:54.0 | the loan. So in this episode, I'll discuss |
| 0:56.8 | the different types of mortgages and loan programs when paying mortgage points saves money |
| 1:02.6 | and how to shop with multiple lenders without harming your credit scores. So whether you're ready |
| 1:07.8 | to buy a home sometime soon like Linda, or you just want to create a savings plan to make it happen sometime in the future, this show will explain how to get the best mortgage possible. |
| 1:19.9 | Welcome back, everyone. This is episode 1021 of Money Girl. I really appreciate you downloading the show. I'm Laura Adams, an award-winning author, |
| 1:29.5 | spokesperson, and money speaker. When you're ready to buy a home, choosing the best lender and |
| 1:35.9 | mortgage can seem daunting because there are many, many choices, and that's ultimately |
| 1:41.3 | good for consumers. But since no two real estate transactions or |
| 1:45.8 | homebuyers are alike, it's essential to become familiar with different types of mortgage |
| 1:51.4 | products and programs. And most of you understand what a mortgage is. You know, it's simply a loan |
| 1:57.5 | on your property, and your home or the property becomes collateral for the debt. |
| 2:02.6 | So that means if you don't make timely payments, the lender can take back the property to |
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