15-, 20-, 30-Year Fixed Loan
30-Year Fixed
A 30-year fixed conventional loan is a loan that has the same
mortgage payments for 360 months.
Conventional loans typically are harder to qualify for than FHA
loans and require a slightly higher down payment. However, in
some cases rates can be lower and have lower closing costs.
Also, monthly mortgage insurance is usually less or can be
nothing with 20% down payment.
20-Year Fixed
This type of loan is the same as the 30-year fixed rate loan
except the life of the loan is 240 months as opposed to 360
months. Since the loan is being paid slightly faster than
the 30-year fixed rate loan, monthly payments for this type of
loan are higher than the 30-year fixed rate loan. Some
Lenders allow for a lesser rate.
15-Year Fixed
This type of loan is the same as the 30-year fixed rate loan except the life of the loan is 180 months as opposed to 360 months. Since the loan is being paid faster than either the 30-year fixed rate loan or the 20-year fixed rate loan, monthly payments for this type loan are higher than the other two loans. Generally, the longer a lender agrees to keep the interest rate "fixed," the greater the risk to the lender, therefore, in most instances, interest rates on 15-year fixed rate loans are slightly lower than on 20- or 30-year fixed rate loans.
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3% minimum down payment required on purchase
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Minimum credit score - usually 620
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Post- bankruptcy: can qualify after 4 years
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Post-foreclosure: can qualify after 7 years
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Post-short-sale: Can Qualify after 2 years (LTV restrictions may apply)