Who Are 20 Year Fixed Loans Best For?
A 20 Year Fixed Loan is best for those that want to save money in interest by paying off their loan sooner.
What You’ll Need To Qualify
- A Minimum 3% Down Payment
- A Minimum FICO Score of 620
- A Debt-to-income ratio (DTI) no more than 50%
- Money to cover closing costs, which are about 2-6% of the property purchase price
Mortgage Insurance Requirements
You will be required to pay mortgage insurance (PMI) if your down payment is less than 20%.
- This typically cost between 0.5 and 1% of your loan amount each year
- Once you reach 20% equity, you can request to cancel (PMI)
- (PMI) is usually cancelled automatically once you reach 22% equity in you home.