Not all loans are created equal.  Some mortgage companies are quick to offer the same, standard loan to all of their clients – not USA Mortgage.  We know that everyone is different and deserves a personalized look to determine what type of loan is the best fit for them.  The two most common loans are the 15-year fixed rate mortgage and the 30-year fixed rate mortgage.  Both loans have beneficial aspects and drawbacks. Here is what you need to know:

  • 30-year fixed rate mortgage – The traditional 30-year fixed rate mortgage has a constant interest rate and fixed monthly payments. In others words, these payments never change. If you plan to stay in your new home for seven years or longer, this may be a great option. However, it can be more difficult to qualify for fixed-rate loans than for a loan with an adjustable rate. When interest rates are low, fixed-rate loans are generally not much more expensive than adjustable-rate mortgages and may be a better deal in the long run due to your ability to lock in the rate for the life of your loan.
  • 15-year fixed rate mortgage – This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan in addition to a lower interest rate—and you’ll own your home twice as fast. Note that a 15-year loan means a commitment to a higher monthly payment. Many borrowers opt for a 30-year fixed rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment as the difference in interest rates is not that significant.

It is ultimately up to you to choose your type of St. Louis home loan, but be reassured that the professionals at USA Mortgage can help you decide what mortgage works best for your family.  Interested in getting the application process started? Contact your local USA Mortgage home loan banker or begin you application online.