Which Loan Is Right for You?

Choosing the right loan program can save you hundreds of dollars every month — and tens of thousands over the life of your loan. Let us help you find the best fit.

Compare Mortgage Loans in Utah: How Long Are You Staying?

One of the biggest factors when you compare mortgage loans in Utah is how long you plan to live in the home. This loan comparison helps Utah buyers match their timeline with the best loan type:

Time in HomeRecommended Loan
1–3 years3/1 ARM or shorter-term ARM
3–5 years5/1 ARM
5–7 years7/1 ARM
7–10 years10/1 ARM, 30-year fixed, or 15-year fixed
10+ years30-year fixed or 15-year fixed

Utah Mortgage Loan Comparison

30-Year & 15-Year Fixed Rate

Advantages

  • • Stable, predictable monthly payment
  • • Protected from interest rate increases
  • • Can always refinance if rates drop
  • • 15-year option builds equity faster with less total interest

Disadvantages

  • • Higher initial rate than ARMs
  • • Doesn't automatically benefit from rate drops
  • • 15-year has higher monthly payments than 30-year

Adjustable Rate Mortgages (ARMs)

Advantages

  • • Lower initial interest rate and payment
  • • May qualify for a larger loan amount
  • • Great if you plan to sell or refinance before the fixed period ends
  • • Rate caps limit how much the rate can increase

Disadvantages

  • • Payment can increase significantly after the fixed period
  • • Less predictability for long-term budgeting
  • • Risk of payment shock if rates rise sharply

First-Time Buyer Programs (FHA, VA, USDA)

Advantages

  • • Lower down payment requirements (0–3.5%)
  • • More flexible credit and income qualifying
  • • Sometimes lower rates than conventional
  • • VA and USDA offer 0% down payment options

Disadvantages

  • • Income and property eligibility limits (USDA, some state programs)
  • • Mortgage insurance required (FHA upfront + annual)
  • • Possible recapture tax if you sell within a few years

No-Point No-Fee Loans

Advantages

  • • No upfront closing costs or discount points
  • • Less cash needed at closing
  • • Good option if you plan to refinance again soon

Disadvantages

  • • Higher interest rate to offset the waived costs
  • • Higher monthly payments over the life of the loan
  • • May cost more long-term than paying points upfront

Home Equity Line of Credit (HELOC)

Advantages

  • • Borrow only what you need, when you need it
  • • Pay interest only on the amount used
  • • Interest may be tax deductible (consult your tax advisor)
  • • Flexible revolving credit line

Disadvantages

  • • Variable interest rate — payments can fluctuate
  • • Can make it harder to refinance your first mortgage
  • • Risk of over-borrowing against your home

Home Equity Fixed Loan (Second Mortgage)

Advantages

  • • Fixed interest rate and predictable monthly payments
  • • Lump sum payout for large expenses
  • • Interest may be tax deductible (consult your tax advisor)

Disadvantages

  • • Higher interest rates than a first mortgage
  • • Adds a second monthly payment
  • • Reduces available equity in your home

Not Sure Which Mortgage Loan Is Right for You in Utah?

Every Utah borrower's situation is different. Let us run a personalized loan comparison based on your income, credit, timeline, and goals — so you can see exactly which mortgage program saves you the most money in Utah.

Get Expert Guidance

Not sure which loan fits best? We'll analyze your situation and walk you through every option — no cost, no pressure.

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