The most common loan term is a 30 year fixed rate mortgage. But for those who plan on paying off their loan fast, doing a 15 year will allow you to take advantage of a lower interest rate and PMI rate. If you’re putting less than 20% down on a conventional loan, you’ll need to pay PMI (Private Mortgage Insurance) until you reach 20% equity. A 15 year loan will not only get you a lower PMI rate, but you’ll also reach 20% equity faster compared to a longer term; meaning you’ll be paying PMI for a shorter period of time. And believe me, compound interest over time is crazy. For example, on a 30 year fixed rate loan of 380k @5%, you’ll pay a total of $354,371.98 in interest. But on a 15 year fixed rate loan of 380k @4.5%, you’ll pay a total of $125,813.56 in interest. That’s almost triple the interest on a 30 year loan. Terms are typically available for 30, 20, 15, and 10 years. But we can customize your loan in any year increment in between 10-30, like 12 years if that’s what might be handy if that’s when you plan to retire for example. I always recommend a first time homebuyer obtaining a 30 year fixed rate mortgage. It’s better to be comfortable with your mortgage payment and having the freedom to pay more on a month to month basis. While you can get a lower rate by taking a shorter term, like 20, 15, or 10 years, it’s also important to feel comfortable with your monthly payment. As long as you feel comfortable with the monthly payment, a 15 year loan can save you a lot of money down the road. It’s important to know your options and we’ll put together a detailed report for you to help you make an educated decision of what loan product and term will be best for you. In addition, we are very competitive and rarely lose deals due to pricing. We also close on average in just 3 weeks, providing a stress-free experience for our clients, as we help more Americans to achieve the dream of home ownership.