A conventional mortgage loan that has the same interest rate and mortgage payment for a specific period, offering payment and housing market stability.
Is a conventional loan right for you?
Are you looking to stay in your home for multiple years at the same, minimal price? If so, a conventional loan may be the best choice for you. Because a conventional loan has the same monthly payments, it’s one of the more popular mortgage products on the market.
A conventional loan can be a great option for homeowners who plan to lock in a lower interest payment while rates are down and are open to refinancing in the future.
With a conventional loan, your monthly payments and interest rates will never change over the life of the loan, giving you financial stability when faced with fluctuating housing rates. A conventional loan offers:
- 100% payment certainty
- Easy budgeting
- Housing market stability
The maximum loan amount for a conventional loan varies by county so it’s important to work with a mortgage professional to help determine if this loan is your best option. Gift funds are allowed on primary and secondary residences, but homebuyers must have 5% of their own funds unless the gift amount covers at least a 20% down payment.
Private mortgage insurance is required on all loans with less than 20% down.