Conventional Fixed Rate Home Loan
What? Conventional Fixed Rate Loan.
The traditional Conventional fixed rate mortgage has a constant interest rate and the principal & interest portion of the payment never change. There are multiple term options for Conventional Fixed Rate Loans, ranging from 10 year to 30 year. A Conventional Mortgage is any mortgage that is not insured or gauranteed by the government (such as FHA or USDA). Due to this, they have more stringent income and credit score requirements than Goverment assured or guarenteed loans. They usually require between 5-20% Down Payment.
Conventional Loans are then broken down into Conforming and Non-Conforming. What are they Conforming to? To the Underwriting Requirements set by Fannie Mae and Freddie Mac. If it does not Conform (Or meet) the requirements, it is considered a Non-Conforming Loan. The usual determinant for this is Loan Amount. Usually, a mortgage loan below $417,000 is considered conforming while mortgage loans above $417,000 are considered Non-Conforming (Jumbo Loan). To learn more about Jumbo Loans, click here.
Why? Conventional Fixed Rate Loan
Conventional Fixed Rate Loans are a great choice for Homebuyers with strong credit scores and money to put down. Closing Costs and Fees may be included in the loan. The Loan really becomes more beneficial the more you put down: the closer you get to 20%, the less Mortgage Insurance is. Once you hit 20%, there is no Mortgage Insurance leading to big savings.
For More info on Conventional Fixed Rate Loan
Call us at 208.957.7300 or text MyHomeLoan to the #79564 for more information!
AmeriFirst Financial, Inc