A Conventional Mortgage Loan is a “conforming” loan, which simply means that it meets the requirements for Fannie Mae or Freddie Mac.
Benefits of Conventional Loans:
Lower Cost: Conventional loans do not have Up Front Mortgage Insurance Premiums (UFMIP) like FHA and some VA loans. The mortgage insurance is also less most of the time depending on down payment and credit score compared to FHA.
Lower Interest Rates: Compared to other types of loans, conventional loans often come with lower interest rates, which can save you thousands of dollars over the life of your loan.
Flexible Loan Terms: Conventional loans offer a variety of loan terms, ranging from 10 to 30 years, giving you the flexibility to choose a term that fits your financial needs. Your Principal and Interest (P&I) payment will not change throughout the life of your loan.
Multiple Types of Loans: Conventional loans can be fixed-rate or variable-rate loans, which are called Adjustable Rate Mortgages (ARM).
No Mortgage Insurance Required: If you have a down payment of at least 20% of the purchase price of the home, you are not required to pay for mortgage insurance, which can save you money on your monthly mortgage payment.
Low Down Payment Options: Conventional loans have 3% down payment options. Some of those options are restricted to lower-income borrowers and first-time home buyers.
Higher Loan Amounts: Conventional have higher loan limits than FHA. All conventional loans can go up to $726,200 unless you are in a county that has a High Balance option. High Balance loans are loans with higher loan limits specifically designed for areas where market demand has led to high home prices.
Versatile Use: Conventional loans can be used to purchase a primary residence, second home, or investment property, and can also be used for a variety of purposes, including home renovations and debt consolidation.
Working with Montis Lending Group
- We work with a variety of lenders to provide you with competitive rates and flexible loan terms
- We average 15 days from Submission to Clear to Close
- Our experienced mortgage broker will work with you to find the best loan option that meets your specific needs and financial goals