A 15 year mortgage in Rochester Hills, Michigan is perfect for someone who can handle a higher monthly payment. You’ll save 15 years of interest versus getting a 30 year mortgage, and that can put thousands of dollars in your pocket. But this type of mortgage isn’t for everyone – do you know if it’s right for you? Talk to an expert with Gem Home Loans and we’ll let you know. We put our clients first, so you’ll be 100 percent comfortable with whatever type of option you ultimately choose.

How the Home Loan Eligibility Process Works

15 Year Mortgage Rochester Hills, MichiganOne of the easiest home loans to obtain is an FHA loan – or a mortgage backed by the Federal Housing Administration. When you qualify for an FHA-approved loan, you’ll get more favorable terms and rates than someone who can’t. This is especially the case for people buying a home for the first time.

The other type of loan is known as a conventional loan. This doesn’t have the backing of the FHA or any other governmental agency, but it’s extremely popular. Unlike an FHA loan, the house doesn’t have to be your primary home. You can get a conventional loan for a vacation home, or for a home you’re buying in order to flip. You typically need a higher credit score for a conventional loan, but you typically won’t pay as much.

Another area in which FHA and conventional loans differ is the down payment. In order to qualify for a conventional loan, your down payment will have to be at least 3 percent. That jumps to 3.5 percent for an FHA loan. 

In order to buy a home, you’ll usually need to have a credit score of at least 580 to make a down payment of 3.5 percent. If your score is between 500-579, that leaps all the way up to a 10 percent minimum down payment.

The Advantages and Disadvantages of a 15 Year Mortgage

Like any sort of mortgage option, a 15-year mortgage has its pros and cons. Here’s a quick look at each.


  • It will cost less over the long term than a 30 year mortgage, because you’ll be paying 15 years of interest versus 30 years. If your mortgage is $250,000 and your interest rate is 4 percent (assuming you’d also pay 4 percent interest on a 30 year mortgage), you’d save more than $70,000.
  • Banks look at shorter-term loans as being less risky than longer-term loans. As a result, there’s a very good chance you could get a better interest rate.


  • You’ll be paying much more each month. Using the same $250,000 home at 4 percent interest as above, you’ll pay about $650 more a month ($1,849 compared to $1,194).
  • Because you’ll be paying more, you might have to buy a more modest home than if you had a 30 year mortgage.

Contact Gem Home Loans – We’ll Eliminate the Complexity

Getting a 15 year mortgage in Rochester Hills, Michigan can seem daunting. You might feel like you have to jump through a lot of hoops, and deal with a lot of frustration, in order to get into the home you want. At Gem Home Loans, we’ll make it easy. Give us a call at (248) 780-1030 or contact us online to learn how.