Conventional Loans
A conventional loan is available in fixed rate and adjustable rate options
Fixed Rate
The same interest rate from the first payment until the loan is paid off.
Do you plan on remaining in your home for 5 years or more?
The security that there is no change in a house payment. Ever.
A conventional fixed-rate mortgage can be from 30 years down to an 10 year option. With just 3% down at closing for a primary residence, you can qualify for a conventional loan for any amount between $25,000 and $715,000
620 Credit score to qualify
In addition, you can use a conventional loan to refinance up to 80% of your property’s current home value.
Significant interest rate improvements at 20 year 15 and 10 year terms. ( Payments will be higher)
Adjustable Rate
Are you purchasing or refinancing a property now, but know you will be moving or refinancing in the next five-10 years?
Do you want to decrease your monthly payments as much as possible by taking advantage of the lowest available interest rate?
A conventional adjustable rate mortgage allows you to capitalize on today’s lowest interest rate, with a fixed term for 5, 7 or 10 years. After the initial term is up, your monthly payment will increase or decrease annually, based on the current interest rate, no more than 2% per year, capping at 5% over your initial interest rate. When purchasing a home with a conventional adjustable rate, 10% down payment is required. You can refinance up to 95% of your home’s value, and you can pre-pay your loan without any penalties.
Why Conventional?
In exchange for higher credit score and debt to income requirements the process to qualify is faster with fewer documents and requirements.
Appraisal waivers possible
620 or above credit score
Typically less PMI if any
PMI not paid up front at closing