The fixed-rate home loan is the model of stability for the home loan industry. The fixed rate term options are 10, 15, 20, 25, and 30 years on our conventional loans. (Only 15 and 30 year terms are available on the VA and FHA products.) These relatively low-risk options gives you predictable monthly principle and interest (P&I) payments for the next 10 to 30 years, depending on which length you choose. This reliable choice particularly appeals to long-term owners ready to settle in one place for a long period of time.
The 25 and 30-year fixed rate home loan
The big attraction of a 25 or 30-year fixed rate home loan is security. The terms protect you from changes in the market (while still having the flexibility to refinance during improved market conditions). When you choose this option, you can expect:
Lower monthly payment compared to 10 and 15-year option
Consistent monthly payment
Predictable principal and interest
Mortgage tax interest deduction
Protection from future interest rate increases
The 30-year product is a staple of most lending programs, and are available as conventional or government-insured products. We also offers these loans on some Jumbo/Non-Conforming products. Federal products offer additional advantages.
The shorter 10 and 15-year fixed rate home loans
We can offer shorter fixed rate terms for 10 and 15-years. These option work well for people who are looking for the same sort of security and simplicity while saving money over the life of the loan.
With a shorter term, you should expect a higher monthly payment. However, you should benefit long-term with a lower interest rate and a lower amount of total interest over the duration of the loan.
The 10 and 15-year alternative also gives you greater power to move. With a higher monthly payment, you build up more equity in the house sooner. This means you can use proceeds from a house sale to make a bigger down payment on a future purchase.
The 20 year term
This term puts you in the middle of the above options. This is a great option to cut time off of a loan when compared to a 30 year fixed product without having the larger payment coming from a 10 or 15 year term.
Bank of Texas - Long live your money
2901 North Dallas Parkway, Suite 100, Plano, TX 75093