Comparing a 15-year Loan to 30-year Loan
When applying for a home loan, there are plenty of options, from jumbo to low down payment options. Aside from the type of loan, you should determine how long you want to pay off your loan.
Here's a brief overview of the difference between a 15-year and a 30-year loan.
• A 15-year and 30-year mortgage can have a fixed rate and fixed monthly payments over the life of the loan. The difference is that you pay off your loan sooner in a 15-year loan versus a 30-year loan --as long as you make the minimum monthly payments.
• A 15-year mortgage usually has a lower interest rate than a 30-year term loan.
• Monthly payments in a 15-year mortgage are higher because you are paying off the principal faster than a 30-year loan.
• You pay lower interest overall on a 15-year mortgage since the life of the loan is cut in half.
✅ Benefits of Contract Loan Processing for VA Loans
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Specialized VA Knowledge
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VA loans have unique requirements (COE, residual income, funding fee calculations, appraisal requirements).
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A contract processor experienced in VA loans can spot potential issues early and streamline the process.
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Cost Savings for Lenders
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No need to hire full-time staff; processors are paid per file.
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Helps smaller brokerages or lenders manage fluctuating loan volumes without carrying extra payroll.
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Faster Turn Times
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Contract processors often work remotely and are paid per closed file, so they’re incentivized to move loans quickly.
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They can push COE requests, follow up on VA appraisals, and ensure VA-specific forms (26-1880, 26-8923) are completed on time.
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Compliance & Accuracy
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VA has strict guidelines (e.g., allowable fees, seller concessions, and veteran protections).
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A skilled processor reduces risk of compliance errors that could lead to loan buybacks or funding delays.
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Scalability
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During high volume seasons (e.g., rate drops, PCS military moves), lenders can bring on extra processors quickly without long-term HR commitments.
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Reduced Loan Officer Burden
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Lets LOs focus on originating, networking, and serving clients while the processor handles gathering DD-214s, income docs, pest inspection reports (if required), and underwriting conditions.
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Improved Borrower Experience
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Veterans and active-duty borrowers often value clear communication and speed.
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A processor who knows the VA process can anticipate documentation needs and prevent last-minute surprises.
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👉 In short: Contract processors help lenders stay lean, compliant, and efficient, while ensuring veterans have a smoother experience.
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