Conventional 15-Year Fixed
15 year fixed loans offer a lower interest rate that is fixed and not subject to change. Also giving you the ability to save money in interest over the life of your loan.
Basically, you’ll pay off your mortgage in 15 years. Reason being, you’ll pay off the loan faster in comparison to a 30 year mortgage. Also, you’ll pay less in interest over the entire loan term.
15 year fixed loans work best for those who want to save more in interest and pay off their loan sooner. The interest rate that won’t change over the course of the entire loan. So, by deciding on the 15 year fixed mortgage rate, you will be saving more in interest straight out the gate. Read more about other benefits down below.
Your interest and principal payments won’t change over the life of the loan. However, the amount for your taxes and insurance can go up and down. Depending on your down payment, you may need to pay for mortgage insurance. Also depending on the amount of equity you have if you’re refinancing.
A minimum 3% down payment
A minimum FICO score of 620 or 580 (for FHA with 10% down)
A debt-to-income ratio (DTI) not exceeding 50%. You can estimate your DTI by adding your monthly payments (debt) and dividing by the total monthly income you bring in before taxes.
Must need finances to cover the closing costs, which includes taxes and insurance.
You will be able to pay off your mortgage quicker than with other loans.
You can fully pay off your mortgage at any time without pre-payment penalties.
If you put down a payment of 20% or higher, you will avoid mortgage insurance.
The interest rate is fixed for the life of the loan. So you won’t have to worry about rates rising.
You can purchase your primary home with as little as 3% down.
You can also refinance your primary home for up to 85% of its value.
You’ll have to pay primary mortgage insurance (PMI) as long as your down payment is less than 20%.
Once you reach 20% equity of your home, it is possible for you to request to cancel the PMI.
Tampa Bay Home Mortgage is ready and willing to provide quality service to those in need. We treat each need in accordance to the person and their needs. Choose us today!