Types of Mortgage Interest rates offered by Prodigy lenders in Dallas
The Prodigy Lending company has been providing you with award-winning services for seventeen years now. We have also been awarded as the Top Workplaces for the US in the past 8 years. All this is because we carefully select a lot of professionals to serve you and handle our customers with the highest level of integrity. Our unique nature makes us offer even educational services.
We’ll take you through the types of mortgage interest rates available for you in Dallas whether you need, FHA, VA, USDA, and even Conventional home loans. The most common types are Fixed-rate mortgages and Adjustable rate mortgages.
They are referred to as fixed-rate mortgage because the interest rates on them stay the same throughout the life of the loan. Examples include; 5-year, 15-year, and 30-year fixed-rate mortgages, the most common types in Houston being the 15-year and 30-year fixed mortgages.
5-year fixed-rate home loan
Retains the initial interest rate for the 1st 5 years and then changes to a variable rate home loan. The main fore deal is that the interest rate is lower than a 30-year mortgage and the main shortcoming is that the interest rate might increase after 5 years.
15-year fixed-rate home loan
It is desirable as it has relatively lower interest rates and also gives you a chance to pay off principal quicker than a 30-year loan. On the contrary, it has higher monthly payments and hence a challenge to pay them if your income reduces.
30-year fixed-rate home loan
Most convenient because it has lower monthly payments despite having raised interest rates. It is best for low-income families and also those planning to stay at the home for a long time.
They are also known as variable-rate mortgages. This is because they have periodically changing interest rates. Examples include; Hybrid ARM, Interest-only ARM and Payment option ARM where Hybrid ARM is the most common home loan in Dallas.
They are usually available in 3/1, 5/1, 7/1, 10/1 and 15/15 ARMs with 5/1 and 7/1 being the most common interest rates. The first number is the number of years that the interest rate is fixed and the second number is how many times the year adjust.
This type only gives you a specific number of years that you pay interest only on your loan which is usually three and ten years. The remainder of the loan is made up of principal and interest payments.
We offer the most competitive rates.
Mortgage refinancing services are also available.
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Visit our offices today or contact us at https://prodigylending.com for more information.