Lucky for you, that’s exactly what a 15-year fixed rate mortgage allows you to do! Since you will have a shorter term, and an unchanging rate, you will end up saving thousands of dollars by paying less interest over the course of your loan. These characteristics make this loan a great choice for the financially savvy homeowner.
How it Works
In a 15-year fixed rate mortgage loan, your monthly payment is based on interest rate (which is, of course, fixed), principal loan amount, property taxes (if you choose), and amortized interest over 15 years. In simple terms, this means your payment will not change throughout the life of your loan.
As for payment, you will be able to pay off your mortgage at any time without any prepayment penalties incurred.
As with any mortgage loan, there are certain requirements that must be met prior to qualification. For a 15-year fixed rate loan, they are as follows:
- You must refinance up to 95% of your primary home’s value.
- You will be able to qualify when buying a home with as little as 5% down.
- Similar to other loans, your credit score may affect your ability to qualify for a 15-year fixed rate loan.
- Your gross monthly income will be taken into account during the qualifying period, as well as monthly debt obligations.
We know loan terminology and processes can seem confusing and complicated, but that’s why we’re here! Give us a call today with any questions or concerns, and one of our mortgage specialists would be happy to help you get started with Austin Capital Mortgage!
Working with Austin Capital Mortgage
Austin Capital Mortgage has proudly been ranked in the top 25 lenders in Central Texas for 20 years running. In addition to continued excellence in our industry, we consistently excel at working with realtors, CPAs, and builders on more intricate or complex deals. In other words, we always:
- Put you, your needs, and your unique situation first.
- Offer some of the most competitive rates in the industry.
- Close fast – in fact, most of our loans close in 30 days or less!
- Offer our valued clients numerous types of loans, making it certain that we will find the ideal loan for you.