Comparing a 15-year Loan to 30-year Loan


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.

Here's a brief overview of the difference between a 15-year and a 30-year 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.

Interest Rates Have Increased

Borrowers May Not Qualify

Due to DTI Calculation

Time To Consider

NO RATIO PROGRAM

No DTI calculation

No Income on Application

No Employment on Application

No Tax Returns

No W2s

No 1099

Only Required to Have

as low as 20% Down Payment

80% LTV = 720+ FICO - 12 Months Reserves

75% LTV = 680-719 FICO - 9 Months Reserves

65% LTV = 660-679 FICO - 9 Months Reserves

Funds for Down Payment

Closing Costs

Prepaid’s

Reserves

Primary Residence

Second Home

Purchase

Refinance

Minimum Loan $200,000



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