Loan Terms

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 a 15 years; the rate on 20 years is almost the same as a 30 years.

Adjustable Rate:

  • Adjustable rate that fluctuates and are note fixed throughout the life of the loan. Composed of an index and a margin. Index is a rate set by market forces and published by a neutral third party. 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.loan terms available in texas

For additional information about mortgage loan terms, please contact our Home Loan Specialists at 281-860-2533 or use the tools in this website.

 

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