Texas Home Loan
Insider Angelo Christian

USDA loans are unique in that they only allow a fixed rate mortgage on a thirty year amortization. There is not a fifteen year mortgage nor an adjustable rate mortgage. Their reasoning is simple. Adjustable rate mortgages are risky and can have payment increases thus affecting a person’s ability to make their mortgage payment. Their loans also do not have any prepayment penalties. There are also no balloons; it’s just a plain Jane thirty year fixed rate mortgage. The interest rates are also very low, usually half percent less than conventional loans so it makes it very attractive to have a lower payment and not to have to pay PMI.

Conventional loans offer all different types of mortgage loans. Adjustable, fixed, balloon, 10 year, 20 year, 30 year. Similar to FHA In this respect.

What you can expect is to get the lowest fixed rate on the market. In order to lock the interest rate you will need to have a written contract on a home and signed loan application with us. Once these items are completed we can lock your interest to secure your financing.