A 15-year home loan typically offers a lower interestrate but higher monthly payments than a 30-year home loan. This is because a 15-year home loan will be paid back in half the time of a 30-year home loan. Your total costs with a 15-year home loan will bemuch lower.
If you have room in your budget for higher monthly payments, the 15-year home loan may be the smart choice for you. Just make sure you can afford the monthly payments. Penalties for missing payments will drastically increase your costs and late payments can also impact your credit score.
30-year Loan
A 30-year home loan typically offers a higher interestrate but lower monthly payments than a 15-year home loan. This is because a 30-year home loan will be paid in twice the time of a 15-year home loan. Your total costs with a 30-year will bemuch higher.
If you need flexibility and lower monthly payments, the 30-year home loan may be the smart choice for you. You can always pay back your 30-year loan more quickly by making larger monthly payments when you can.
Which loan is right for me?
When choosing your home loan, you need to fully understand your budget.
If you are looking for flexibility and lower monthly payments, the 30-year home loan may be the smart choice for you. If you can afford higher monthly payments, the 15-year home loan may be the smart choice for you. Use our calculators and resources to learn more and decide what's right for you.
Also, the Federal Government is offering an $8,000 Tax Credit to first-time buyers. You may want to take advantage of this opportunity. Learn more by visiting the Internal Revenue Service (IRS) website.
OneUnited Bank is your Community Development Financial Institution (CDFI). We have been serving the Boston, Los Angeles, and Miami communities for over 25 years. In the past eight years alone, we have financed over $600 million in loans, including churches, affordable housing, office buildings and retail stores - most in low to moderate income communities. However, we never participated in subprime lending and always encourage our customers to make high quality financial decisions.
As your neighborhood bank, OneUnited wants to make sure you make an educated, smart choice when making your home loan or other financial decisions. We have won the Bank Enterprise Award (BEA) for five years in a row. Our growth has enabled us to invest in people and technology to offer better services to our customers. We are proud to be the premier bank for urban communitiesacross America.
Under TAGP, the FDIC temporarily provides a full guarantee for deposits held by FDIC insured institutions in noninterest bearing transaction accounts. This coverage became effective on October 14, 2008 and will expire at 11:59 PM EST on June 30, 2010. Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules. Please visit the FDIC website for more information on this pro gram (www.fdic.gov)
* The interest rate (1.55%) and annual percentage yield (APY) (1.55%) is effective today and has been effective as of March 8th, 2010. $1,000.00 minimum balance to open and $1,000 minimum to earn disclosed APY. (For balances of $100,000 and more, the interest rate and APY are 1.55%.) All rates are subject to change daily. Interest on CDs is compounded at the end of the term or annually, which ever is shorter. A penalty may be imposed for early withdrawals on all CDs, and fees may reduce earnings on the account. For more information, including how interest is calculated and fees, please review our Online Truth in Savings Disclosures or speak with our Financial Service Representatives. Please call 1-877-One-United or 877-663-8648 for current rate or further detailed information.
