Fixed-rate: You’ll have the same interest rate and monthly payment for the entire repayment term, even long-term financing options such as a 30-year loan.
Adjustable-rate (ARMs): You’ll start off with a lower interest rate than the fixed-rate loan, but it will be adjusted from time to time, causing monthly payments and interest to change over time.
If you are able to make a down payment of 20% or more, choosing a conventional loan can allow you to avoid paying mortgage insurance completely (an average savings of $1000/year). However if your downpayment is less than 20%, you’ll likely still be required to pay for PMI (Private Mortgage Insurance) with conventional financing. This type of loan also typically has a shorter processing time and fewer hurdles than a government-backed loan, and can save you time in the home buying process.