Conventional Loans

Designed for borrowers with good or excellent credit. Loan amount is generally limited to $424,100 for a single-family home, although amounts may be higher in regions where home prices are higher. Fixed and adjustable rate options are available. Down payments as low as 3.00% with no mortgage insurance for loans with down payments of 20% or greater.

Features

What You Need to Know

There are two kinds of conventional loans. One is a fixed rate mortgage and the other is an adjustable rate mortgage.

Fixed Rate Mortgage

The fixed rate option is best if you are planning to own your home for at least 7 years. For as long as you have your loan, the total amount of your principal plus interest will not increase.

  • Rate protection - your rate stays the same even if mortgage rates go up.
  • Payment stability - you will always know what your monthly payment will be.
  • Budgeting ease - budgeting your mortgage expense is easier because your payment does not fluctuate.
  • Earlier pay off - even with a fixed rate, you can make extra payments to pay off your loan sooner.

Adjustable Rate Mortgage

An adjustable rate mortgage is a loan with an interest rate that may fluctuate over time but only after an initial "fixed" period (typically 5 or 7 years).

  • Lower rates - during the fixed period, the interest rate is often lower than for other loans.
  • Lower payments - when your interest rate is low, your payments will be lower too.
  • Lower cost - if you are planning to own your home for only 5 to 7 years, this option keeps your payment lower.
  • Rate caps - control how much your rate can increase.

Trouble knowing where to start? Learn how to get started and what to expect during the home buying or refinancing process in our Education section.

For other questions, read our FAQs or call 855-376-3168