CONVENTIONAL HOME LOANS
Conventional Home Loans Lower Rates with More Flexibility
A conventional mortgage refers to any loan that is not insured or guaranteed by the federal government, as opposed to government-insured loans including Federal Housing Administration (FHA), U.S. Department of Veteran Affairs (VA) and U.S. Department of Agriculture (USDA). Conventional mortgages (whether conforming or not) typically have a slightly higher down payment than government loans; however, this loan option normally provides more flexibility with fewer restrictions.
Conventional Loan Highlights
If you have good credit and stable income, a conventional loan might be the right option for you since it offers the following:
Lower Interest Rates for Borrowers with Good Credit
Flexible Mortgage Insurance Options
Fewer Penalties and Fees
Flexible Loan Terms
Conventional Loan Programs
An adjustable-rate mortgage (ARM) features interest rates that can change periodically after the initial fixed-rate period. After this introductory period, monthly payments may increase or decrease based on the market, which can affect monthly payments. There are a number of scenarios where an ARM could be right for you, learn more here.
Fixed-rate mortgages protect you against rising rates since the interest rate remains the same for the entire term of the loan. Plus, you have the option of selecting a 10, 15, 20, 25 or 30-year term. If you plan on staying in your home for a longer time frame, a fixed-rate mortgage could be the right solution for you—learn more here.
A jumbo loan, or non-conforming mortgage, allows you to purchase more expensive homes with a loan amount above the conforming limit set by the Federal Housing Finance Agency. In most areas of the country, the conventional conforming loan limit is $548,250; however, the limit is $822,375 in higher cost areas. A jumbo loan might be the right option for you, to learn more, click this link!
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* This article does not constitute tax or financial advice. Please consult a tax and/or financial advisor regarding your specific situation.
**Subject to underwriting review and approval.