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​For more information contact 
Mike Harrell 
512-657-8284 
Michael.Harrell@supremelending.com
www.mikelendstexas.com

Conventional Loans:

Conventional loans are mortgage loans offered by non-government sponsored lenders. These loan types include:

Fixed Rate Loans
Adjustable Rate Loans (ARMs)
Combination (Hybrid) Loans
Balloon Mortgages and Pledge Asset Loans
Jumbo / Construction Loans





Fixed Rate Mortgage:

With a fixed rate mortgage, the interest rate does not change for the term of the loan, so the monthly payment is always the same. Typically, the shorter the loan period, the more attractive the interest rate will be.

Payments on fixed-rate fully amortizing loans are calculated so that the loan is paid in full at the end of the term. In the early amortization period of the mortgage, a large percentage of the monthly payment pays the interest on the loan. As the mortgage is paid down, more of the monthly payment is applied toward the principal.

A 30 year fixed rate mortgage is the most popular type of loan when borrowers are able to lock into a low rate.

Benefits:
Lower monthly payments than a 15 year fixed rate mortgage
Interest rate does not go up if interest rates go up
Payment does not go up, it stays the same for 30 years

Drawbacks:
Higher interest rate than a 15 year fixed rate mortgage
Interest rate stays the same even if interest rates go down

A 15 year fixed rate mortgage allows you to pay off your loan quicker and lock into an attractive lower interest rate.

Benefits:
Lower interest rate
Build equity faster
If interest rates go up, yours is fixed

Drawbacks:
Higher monthly payment stays the same if interest rates go down
Interest rate stays the same even if interest rates go down

CLEAR FORKESTATES