Did you know Conventional 15yr rates DO NOT penalize you for lower credit scores, unlike 30 year rates?

By
Mortgage and Lending with www.DaveYourMortgageGuy.com - Legend Lending NMLS #293883
https://activerain.com/droplet/fDs

Did you know Conventional 15 year rates do not penalize you for lower credit scores, unlike 30 year rates? They do not!!  So a client with a 680 would get the same 15yr rate as a client with a 740 credit score. Lets say you are buying a home of $250,000 with a 20% down payment and you have a 675 credit score.  Your 30 year rate would be 5%(apr 5.48%), but the 15 year rate would be 3.75%(apr 4.25%).   For this example the principal part of your mortgage payment for a 30 year mortgage would be $1074 and the payment for the 15 year payment would be $1454.

Is the 15 year mortgage for everyone, no.  But, it could be the right mortgage option for you.  Especially if you do not want to pay a Higher Interest Rate.  Make sure you know all your options when getting a mortgage. 

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David Krichmar 

Mortgage Banker NMLS#293883 

Legend Home Lending

LLC NMLS #229421

Has Written For Realtor Magazine, Houston Agent Magazine, Scotsman Mortgage Guide

Appeared On Fox Business

 

Named 5 Star Mortgage Professional 2013, 2014, 2015, 2016, 2017

Named Top Mortgage Professional 2010,2011

Office:832-689-6012

Dave@DaveYourMortgageGuy.com

www.DaveYourMortgageGuy.com

For More Mortgage Info Follow me at  Dave's Blog

 

If you are looking for a FHA, VA, USDA, Homepath, Conventional, Jumbo, Construction, FHA 203k mortgage in Fort Bend County, Sugar Land, Houston, Katy, Harris County, Brazoria County, Pearland, Richmond, Bellaire, West University, The Woodlands, Kingwood, Friendswood, Clear Lake, Galveston, Fulshear, Tomball, Spring, Conroe, Montgomery County or anywhere in Texas I am your GUY!  

 

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Rainmaker
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Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

I did!  but unfortunately the people with lower scores typically can not qualify for the larger payment

Jul 27, 2011 05:56 AM #1
Rainmaker
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David Krichmar
www.DaveYourMortgageGuy.com - Legend Lending - Sugar Land, TX
DaveYourMortgageGuy.com

Thanks Robert, but everyone's situation is different.  I have a client right now who is choosing a 15yr mortgage because of their credit score

Jul 27, 2011 06:00 AM #2
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Rainmaker
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David Krichmar

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