The Williams are buying a house that costs $323,000 and can afford a 10% down payment. If the Williams want the lowest monthly payment, which loan option would you recommend?

A 30-year loan spreads repayment over the longest period, which generally keeps monthly payments lower than a 15-year loan. The 10% down payment leaves a smaller loan balance than the 3.5% down option, and the 6% rate is also lower than that option’s 6.25% rate. The 20% down option is beyond what the Williams can afford, so the best choice is the 30-year fixed loan with 10% down at 6%.

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