Conventional Loans

Conventional Loans: Everything You Need to Know

What is a Conventional home loan?

Conventional loans attract either fixed or adjustable interest rates. Home loans that run for between 15 -30 years usually have fixed interest rates. Conventional loans will enable you to buy your dream home with as low as 3% down payments. These payments are usually categorized between 3 -20% of the entire purchase amount. Mortgage insurance is usually cheaper on conventional loans when compared to other types.

Is a Conventional Loan Right For Me?

Both fixed and adjustable interest rates are applicable to conventional loans. Loans that mostly run for 15 -30 years usually have fixed interest rates. Other mortgage companies usually provide fixed-rate mortgages that range between 10 – 25 years. This, in turn, tends to burden the consumers since they will be required to pay more in terms of down payment. With our mortgage insurance plan, clients are allowed to pay up to 3% in down payment.

What are the Benefits of a Conventional Loan?

If you have a 20% down payment, then you won’t require any private mortgage insurance. There are usually instances where the lender settles any closing charges that have been incurred. This usually facilitates closings efficiently and without much fuss. The policies found in conventional loans, including the payment terms, are usually very flexible.

*Loan terms are subject to change. This information is meant for educational purposes and is not a commitment to lend. To qualify for a conventional mortgage loan, please reach out to our licensed loan officers, or apply online. 

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