If you have equity in your home and are looking to refinance, a conventional loan can be the best option for you. With reduced fees and great rates, you could save thousands over the life of your loan.
A conventional mortgage is a loan that is not guaranteed or insured by any government agency. It is typically fixed in its terms and rate.
Conventional mortgages can be the perfect match for those with a good credit history looking for a variety of down payment options and loan amounts. These mortgages follow the lending guidelines set forth by government-sponsored enterprises like Fannie Mae or Freddie Mac. A conventional mortgage can come with super low closing costs and flexible payment options.
Conventional mortgages can be either conforming or non-conforming. Conforming loans follow the guidelines, terms, and conditions of government-sponsored enterprises such as Fannie Mae and Freddy Mac which are stockholder-owned corporations. Non-conforming conventional loans typically don’t meet the requirements of these government-sponsored enterprises.
Conventional mortgages Highlights:
• Low down payment options available.
• No mortgage insurance options.
• If required, low monthly mortgage insurance.
• If required, multiple mortgage insurance payment structures available.
The Conventional Mortgage comes with:
1) Fixed Rate Mortgage: The interest rate remains the same during the entire term of the mortgage or for a stipulated length of time.
2) Adjustable Rate Mortgage: In the case of adjustable rate mortgages the interest rate is not fixed, but changes during the life of the loan. These changes are linked to an index rate and move in accordance to it.
There are also mortgages that combine aspects of fixed and adjustable rate mortgages. For example, rates start at a low fixed-rate for seven to ten years, and then adjusting to market conditions. Our professionals will guide you about these and other special kinds of mortgages that fit your specific financial situation.
Contact us today at(289) 401-0005 to get the right loan program for you.