Question

What is the correct order for mortgage loan types from lowest typical interest rate to highest typical interest rate?

Answer 1

Short answer (simple, typical ordering):
15‑year fixed < 30‑year fixed (conventional) ≈ VA < FHA/USDA < jumbo < investment‑property loans < home‑equity/second mortgages (HELOC) < non‑QM / subprime

Important caveats and a more useful two‑view answer
- ARMs (e.g., 5/1) often start with the lowest initial rate of all, so if you rank by initial “teaser” rate the order usually begins with ARMs before fixed‑rate loans. But after the fixed period an ARM can reset higher, so its long‑term ranking is different.
- VA and USDA loans are government‑guaranteed and frequently have rates comparable to or slightly below conventional 30‑year fixed for well‑qualified borrowers.
- FHA often shows slightly higher rates than conventional because of mortgage insurance and borrower profile.
- Jumbo loan rates can be either higher or lower than conforming depending on market and borrower credit — but they’re commonly higher for borrowers who aren’t top‑tier.
- Investment‑property loans, second mortgages/HELOCs, and non‑QM/subprime loans typically carry higher rates because they’re seen as higher risk.

If you want a tailored ranking for your situation, tell me: loan amount, loan type(s) you’re considering, credit score, down payment, and property use (primary vs investment).