Mortgage options

Alternatives to a 30-year fixed mortgage for Washington buyers.

The 30-year fixed is the default, not the only choice. Depending on how long you will keep the home, your cash and your income path, a different structure may lower total cost or the early payment. This hub compares the common alternatives in plain language so you can ask your lender sharper questions.

Talk to the team Sell your home

Couple comparing two loan estimates with a loan officer in an office overlooking the Eastside

Quick answer

Common alternatives to a 30-year fixed mortgage include a 15-year fixed (higher payment, typically lower rate and far less total interest), an adjustable-rate mortgage such as a 5/6 or 7/6 ARM (lower initial rate for a set period, then adjusts within caps), a 2-1 temporary buydown (payment reduced for the first two years, often funded by seller credits), permanent discount points (pay upfront to lower the rate for the life of the loan), assuming a seller's existing FHA or VA loan where allowed, and Washington State Housing Finance Commission programs for eligible buyers. The right choice depends on how long you expect to keep the loan, your reserves and your tolerance for payment changes. Compare Loan Estimates side by side with a licensed loan officer.

6 options

Common structures compared on one page

Break-even

Points and buydowns only pay off if you keep the loan long enough

Caps

ARM adjustments are limited by contract caps — read them

EN + 中文

Loan Estimates explained in both languages

Questions this hub answers

alternatives to 30 year fixed mortgage washington state
15 year vs 30 year mortgage
adjustable rate mortgage
2-1 buydown
mortgage rate buydown
assumable mortgage

How to choose a loan structure

01
1. Estimate how long you'll keep the loan
A planned move or refinance in a few years favors different structures than a forever home.
02
2. Decide what you are optimizing
Lowest payment now, lowest total interest, or most flexibility. Each alternative trades one for another.
03
3. Ask for Loan Estimates on two or three structures
Compare rate, APR, points, lender credits and cash to close on the same price and down payment.
04
4. Calculate break-even for points and buydowns
Divide the upfront cost by the monthly savings to see how many months it takes to recover.
05
5. Use seller credits strategically
In some negotiations a seller credit toward a buydown or points does more for your payment than a small price cut.

Mortgage alternatives compared

Structure	How it works	Fits buyers who	Watch out for
15-year fixed	Shorter term, higher payment	Have strong income and want less total interest	Less monthly flexibility
5/6 or 7/6 ARM	Fixed for 5 or 7 years, then adjusts	Expect to move or refinance within that period	Payment changes after the fixed period
2-1 temporary buydown	Lower payment in years 1–2	Expect income growth or use seller credits	Must qualify at the full note rate
Discount points	Pay upfront for a lower rate	Will keep the loan long-term	Break-even period
Assumable FHA/VA loan	Take over seller's existing loan	Find an eligible listing with a low rate	Gap between price and loan balance
WSHFC programs	State-backed loans and assistance	Meet income and program rules	Price and income limits

Two loan comparison sheets, a calculator and a small house model on a desk

Checklist

Questions to ask your lender

Loan Estimates for at least two structures on the same scenario.
ARM index, margin and adjustment caps in writing.
Qualifying rate for any temporary buydown.
Break-even months for points.
Whether the listing's loan is assumable and the process.
WSHFC program eligibility and participating lenders.

Frequently asked questions

Is a 15-year or 30-year mortgage better?

A 15-year usually costs far less interest overall but has a higher payment. A 30-year keeps payments lower and more flexible. Many buyers choose a 30-year and prepay when they can.

What is a 2-1 buydown?

A temporary reduction of the interest rate — commonly 2 percentage points in year one and 1 point in year two — funded upfront, often by a seller credit. From year three the payment is based on the full note rate.

Are adjustable-rate mortgages risky?

They carry payment-change risk after the fixed period. Caps limit how much the rate can move. They fit buyers who expect to sell or refinance before the adjustment.

Can I assume the seller's mortgage?

FHA and VA loans are often assumable with lender approval; most conventional loans are not. You need cash or a second loan to cover the difference between the price and the remaining balance.