Mortgage Market Update

Megan Luksha

Tuesday, November 3, 2026

Loan term vs. interest rate — which one matters more?

One of the biggest decisions in a mortgage isn't about rates at all. Here's what borrowers often overlook when they're comparing loans.

National Mortgage Rates · November 2, 2026

Conventional 30-Year

7.13%

FHA 30-Year

6.96%

VA 30-Year

6.76%

Source: Optimal Blue daily mortgage indices via FRED

Rates shown are national mortgage index rates and are provided for informational purposes only. Actual rates vary based on credit profile, loan amount, and market conditions. Please contact us for a personalized rate quote.

Mortgage Basics

Why your loan term matters more than you think

When you're shopping for a mortgage, the interest rate gets all the attention — but the length of your loan is just as important to your finances. A shorter loan term means you'll pay off your home faster and pay less interest overall, but your monthly payment will be higher. A longer term spreads those payments out, making each one easier to manage month to month, though you'll pay more interest in total. The right choice depends on your budget, your plans for the home, and what matters most to you right now. There's no universal "best" answer — it's about what works for your life.

If you're curious whether a different loan term might make sense for you, I'd be happy to walk through the tradeoffs and show you how they play out over time.

Let me know if you'd like to explore what term could work best for your situation.

Tip of the Week

Refinancing resets your amortization clock. If you're 10 years into a 30-year loan, consider a shorter term to avoid paying more total interest.

Tips for Homeowners

Co-Signing a Mortgage: What You're Really Agreeing To

1.	Co-signing makes you equally responsible for the debt. If the primary borrower misses payments, your credit score takes the same hit and the lender can pursue you for the full balance.

2.	The co-signed mortgage debt appears on your credit report and counts toward your DTI. This can limit your ability to qualify for your own financing until the loan is paid off or refinanced out of your name.

3.	There's no automatic way to remove yourself as a co-signer — the primary borrower must refinance the loan in their name alone. Get this understanding in writing before you sign.

Have questions about how any of this affects your mortgage or home purchase? We're here to help — reach out to the Megan Luksha team any time and we'll walk you through your options.

Your Mortgage Advisor

Megan Luksha

megan@lukkeyventures.com

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