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Fixed Rate Conventional Mortgages offer the confidence of knowing your rate and payment will not change for the term of your loan. The Conventional program is great for anyone looking for flexibility and longer length of time in their home.

What Is a 15-Year Fixed-Rate Mortgage?

For decades, the 30-year mortgage has been the preferred choice of home buyers due to the lower monthly payments and less stringent qualification requirements.

In recent years, the 15-year fixed-rate mortgage has become an increasingly popular option for Alabama home buyers who want to own their home sooner and get rid of mortgage payments faster.

This mortgage loan type requires you to make regular monthly payments over a 15-year time frame. If you make the payments on schedule, the home will be all yours at the end of the term.

The interest rate remains the same for the duration of the loan, so the amount you’re required to pay each month will never change.

Conventional Loan Features

Up to 95% financing for Purchase Loans
10, 15, 20, and 30 year terms available
Minimum FICO 620
Manufactured home financing available
Mortgage Insurance required with LTV of 80% or more
Cashout amount available up to 65%
Maximum Loan amounts apply by location

Benefits of a 15-Year Fixed Mortgage

In addition to offering the opportunity to take full ownership of your home sooner, a 15-year fixed-rate mortgage provides several advantages:

Lower Interest Rates
Because lenders are at risk for a shorter time period with a 15-year mortgage, the interest rate is lower compared to longer loan terms — anywhere from a quarter of a point to a full point in many cases. While this difference might not sound like much, it can reduce your overall cost by tens of thousands of dollars.
Builds Equity Faster
Lenders look favorably on the smaller payments that come with a 30-year mortgage, making it easier to get approved for a loan.
Reduced Fees
If your loan is purchased by a federally backed mortgage company like Fannie Mae or Freddie Mac, you could end up paying less in fees known as loan-level price adjustments. These extra costs typically apply only to borrowers who take out 30-year mortgages who have lower credit scores and make a down payment of less than 20%.

Disadvantages of a 15-Year Mortgage

Higher Monthly Payment
Since you’re compressing your mortgage into a much shorter time frame, you’ll pay more per month for a 15-year loan than a longer-term loan.
Harder to Qualify
You may also find it harder to qualify for a 15-year fixed mortgage than a loan with a longer term. Lenders may have concerns about your ability to make the monthly payments, especially if you have a lower income or a marginal credit score or are carrying a heavy debt load.

Contact CIS Home Loans to Learn More and Apply Today

If you’re considering a home loan with a shorter term, CIS can help. We offer some of the most competitive 15-year fixed mortgage rates in the country. And with our exceptional service, you’ll experience a smooth, hassle-free experience. If you’re looking to get into your new home quickly, our average time from application to closing is only 25 days.

Contact us to get your loan application started today!

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