Loan Terms are the length or duration of the time to pay off the loan. It could either be a Fixed rate mortgage or an Adjustable Rate Mortgage. The length of time to pay off the loan can be either: 10, 15, 20, 25 or 30 years, respectively. The loan term of today’s mortgage loan can be tailored to fit any family’s need and budget. Whether you are looking to pay off the mortgage loan in a short period of time, or keep the house only for a short time, we have a loan program for you.
Fixed Rate:
- Fixed rate and payment that cannot move up and fixed throughout the entire life of the loan.
- 30 years fixed – the most commonly used option;
- 15 years fixed – primarily beneficial to pay off the mortgage loan in a short period of time. Builds equity easier and faster than any type of loan.
- 20 or 10 years fixed – in between the 15 and 30-year term but not as popular because the rate on 10 years is about the same as 15 years; the rate on 20 years is almost the same as 30 years.
Adjustable Rate:
- Adjustable rate that fluctuates and is not fixed throughout the life of the loan. Composed of an index and a margin. The index is a rate set by market forces and published by a neutral third party. A margin is an agreed upon number of percentage points that is added to the index to determine the rate and final payment.
- 3 years – rate is fixed for first 3 years then adjust after 3 years;
- 5 years – rate is fixed for 5 years and adjusts thereafter;
- 7 years – rate is fixed for 7 years and adjusts thereafter;
- 10 years – rate is fixed for 10 years and adjusts thereafter;
- Interest Only – considered a temporary loan and resets to an adjustable rate after the initial period.
For additional information about mortgage loan terms, please contact our Home Loan Specialists at (866) 828-9198 for immediate assistance or use the tools on this website.
