A 15-year fixed rate mortgage, with its lower interest rate and higher payment amount, builds equity faster because you pay down the principal balance quicker. Since a 15-year mortgage is repaid in half the time, that’s 15 years you won’t be paying interest, which represents some substantial savings.
This may be a good choice if you can afford the higher monthly payments in order to enjoy the savings in interest overall. Also if you don’t plan to stay in your home for three decades, the shorter-term mortgage means more equity in the home when you sell it, and therefore more of a profit.
To make a 15-year mortgage work, you’ll need a reliable income and enough money left after your monthly payment to cover expenses, savings and emergencies. There’s more flexibility with a 30-year mortgage, since you can always choose to paying extra any month to reduce the principal.
Generally any home loan can have the option for a 15 year fixed rate mortgage. You have higher payments, but for half the time. Find some typical loan uses below.
New Home Loan at basic interest rates from Gem Home Loan Company. You can apply online and check your eligibility and easy EMI. Fast Approval for your new home loan.
With a home construction loan, you borrow money to pay for the cost of building your home and then once the house is complete and you move in, the loan is converted to a permanent mortgage.
Gem Home Loans offers home loan for land purchase to make your dream home. You can compare home loan rates with our compare loan table. Apply online for Home Loan.
Get instant approval for renovation your home. Gem Home Loans offers home improvement loans. It is with basic rate and flexible repayment. For more detail you can check our loan products.
if you can afford to pay more monthly than the 15-year mortgage will be the best financial savings in the long run. Low 15-year mortgage rates save money, and buyers interested in paying down principal quickly often can do it without breaking their bank accounts.
For most borrowers, the answer is “yes,” but there may be alternatives that can offer similar predictability in payments for shorter time periods. That can save money in the near term and/or long-term. Thirty-year fixed rate mortgages are often best if you expect to be in your home for 10 or more years.
Lower interest rates that range from a quarter to half a percentage point may not seem like a lot, but it means more of your payment is paying off the principal. Paying off a house in 15 years saves a substantial amount of interest, and once its paid off, gives you more disposable income with no house payment.
Monthly payments for a 15-year mortgage run about 50% higher than on a 30-year home loan. This could make it hard for borrowers to respond to emergencies and other needs.
A mortgage backed by the Federal Housing Administration (FHA) is one of the easiest home loans to get. Because the FHA insures the mortgage, FHA-approved lenders can offer more favorable rates and terms — especially to first-time homebuyers.
Conventional loans are not guaranteed by any government agency, and are the most popular mortgage option. Fannie Mae and Freddie Mac set conventional loan guidelines, which tend to be more strict than borrowing standards for government-insured loans.
Lenders require proof of steady income, and will scrutinize your employment history and income from the past two years. Self-employed borrowers and those with variable incomes will have to provide additional paperwork to verify income.
The minimum down payment is 3% for conventional loans; FHA requires a 3.5% minimum down payment. Down payments can come from your own money or a gift from a family member.
Homebuyers making a 3.5% down payment will need a minimum score of 580. The down payment requirement jumps to 10% with a credit score between 500 and 579.
If you have a question that deals with clients, customers or the public in general, there is bound to be a need for the FAQ page.
Gem Home Loans does not do any residential mortgage that has a pre-payment penalty, pay off as quickly as you like.
Yes we do. If you are interested in a Refinance quote to lower your monthly mortgage payments, please click here.
Even though many focus on numbers, rates, terms, and liabilities, we focus on you. This is the major difference at Gem Home Loans. We know this process can be confusing, time-consuming, and frustrating. Reducing fear and clearly explaining your options is why so many people in Michigan are putting their trust in us.
We appreciate your trust in us!
We are located at 71 Walnut Blvd, Suite 204,
Rochester, MI 48307
248.318.2394
This is just our home office we service the entire state of Michigan.
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