How to pick the best mortgage

AnnaMaria Andriotis, a reporter for The Wall Street Journal, recently wrote about how homebuyers can get the best deal on a loan.

Whether you're trying to upgrade to a bigger home or buying your first, your options and best deals can differ, she writes.

Lenders are lowering the bar for home buyers seeking a first home by letting them make smaller down payments--an option that could appeal to young buyers and others who haven't amassed significant savings.

In September, Regions Financial began offering mortgages to first-time buyers with down payments as small as 5%. TD Bank, the U.S. unit of Toronto-Dominion Bank, lowered its minimum down payment to 3% for certain borrowers last year. Nonbank lender Social Finance, which is based in San Francisco, began giving out mortgages last year and is permitting 10% down payments for home loans of up to $5 million.

Some lenders allow for no down payment. Navy Federal Credit Union, the largest U.S. credit union by assets, doesn't require a down payment for mortgages of up to $1 million.

Andriotis joined MPR News' Kerri Miller to talk about the best deals for home buyers.