When applying for a home loan, there are plenty of options, from jumbo to low down payment options. Aside from the type of loan, you should determine how long you want to pay off your loan.
• A 15-year and 30-year mortgage can have a fixed rate and fixed monthly payments over the life of the loan. The difference is that you pay off your loan sooner in a 15-year loan versus a 30-year loan --as long as you make the minimum monthly payments.
• A 15-year mortgage usually has a lower interest rate than a 30-year term loan.
• Monthly payments in a 15-year mortgage are higher because you are paying off the principal faster than a 30-year loan.
• You pay lower interest overall on a 15-year mortgage since the life of the loan is cut in half.
TEXAS RESIDENTS: CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A
MORTGAGE COMPANY OR RESIDENTIAL MORTGAGE LOAN ORIGINATOR
LICENSED IN TEXAS SHOULD SEND A COMPLETED COMPLAINT FORM TO THE
DEPARTMENT OF SAVINGS AND MORTGAGE LENDING (SML): 2601 N. LAMAR
BLVD., SUITE 201, AUSTIN, TEXAS 78705; TEL: 1-877-276-5550. INFORMATION AND
FORMS ARE AVAILABLE ON SML'S WEBSITE: SML.TEXAS.GOV.
