FIXED RATE CONVENTIONAL LOANS
30 Year Fixed
A 30 year fixed conventional loan is a loan that has the same mortgage payments for 360 months.
25 Year Fixed
This type of loan is the same as the 30 year fixed rate loan except the life of the loan is 300 months as opposed to 360 months. Since the loan is being paid slightly faster than the 30 year fixed rate loan, monthly payments for this type loan are higher than the 30 year fixed rate loan. Some Lenders allow for a lessor rate.
20 Year Fixed
This type of loan is the same as the 30 year fixed rate loan except the life of the loan is 240 months as opposed to 360 months. Since the loan is being paid slightly faster than the 30 year fixed rate loan, monthly payments for this type loan are higher than the 30 year fixed rate loan. Some Lenders allow for a lessor rate.
15 Year Fixed
This type of loan is the same as the 30 year fixed rate loan except the life of the loan is 180 months as opposed to 360 months. Since the loan is being paid faster than either the 30 year fixed rate loan or the 20 year fixed rate loan, monthly payments for this type loan are higher than the other two loans. Interest rates on 15 year fixed rate loans are slightly lower than on 20, 25 or 30 year fixed rate loans.
