Financing in Louisville>Question Details

k.subedi, Home Buyer in Louisville, KY

what is this 15 years fixed lock?

Asked by k.subedi, Louisville, KY Fri Jul 26, 2013

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FHA Credit Score Requirements:


530: Minimum credit score required to qualify for an FHA loan and satisfy FHA Credit Requirements
530-579: Credit scores in this range will qualify for a minimum down payment of 10%
580: Minimum credit score required to qualify for a minimum down payment of 3.5%
620: Accepted by a small number of mortgage lenders
640: Typical minimum credit score required by mortgage lenders.
0 votes Thank Flag Link Tue Aug 6, 2013
I`m guessing you`re referring to a 15 year fixed rate, meaning that the rate is fixed or locked for 15 years. Most homes are purchased with a 30 year fixed rate, but it is possible to get a 25, 20, 15 etc year fixed rate also. The less time you have to pay your loan in, the greater the monthly payment. At one time during the housing bubble and the days of insanity, banks were making 40 year loans with up to 25% cash back at closing!

Alternatively it may be that you`re looking at a 30 year loan with the rate fixed (locked) for 15 years at which time you would either have to pay it off in full or refinance the remaining principal balance under terms set in your mortgage. That new rate may or may not be capped at a certain %.

It sounds as though you may be looking at an unusual loan. You,d be well advised to have another banker or loan officer check it. Rate is important, but it,s not everything. Be sure to check such issues as prepayment penalty, closing costs, apr etc

Best of luck and happy house hunting! Call if we can help.
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0 votes Thank Flag Link Sat Jul 27, 2013
Any lender should be able to answer your question but I am guessing it is where your interest rate is locked in for 15 years. After that you will probably have to refinance at the going rate.
Hope this helps.
0 votes Thank Flag Link Sat Jul 27, 2013
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