What are Conventional Loans?
A popular loan type, conventional fixed rate loans feature a constant interest rate for the life of the life. Generally speaking, monthly payments remain constant. Traditionally borrowers are expected to provide at least a 3 percent down payment. Contact us for details on down payment requirements.
Available terms generally range from 10 years, 15 years, 30 years and 40 years.
Most Common Types of Conventional Loans
Fixed Rate Mortgages: Your rate and payment never change.
- 30 Year Fixed Loan
Benefits: Lowest fixed monthly payments
- 20 Year Fixed Loan
Benefits: Low fixed monthly payments
- 15 Year Fixed Loan
Benefits: Lower rate than the 30 or 20 Year Fixed Loans; Pay less interest and pay your home off more quickly.
- 10 Year Fixed Loan
Benefits: Lower rate; Pay off your loan and build equity faster.
- 5 Year Fixed Loan
Benefits: Lowest rate; Pay off your loan and build equity the fastest
Adjustable Rate Mortgages: After the initial period your interest rate can change once a year.
- 3/1 ARM
Fixed Rate for 3 Years, Adjustable Rate for the remaining 27 years
- 5/1 ARM
Fixed Rate for 5 Years, Adjustable Rate for the remaining 25 years
- 7/1 ARM
Fixed Rate for 7 Years, Adjustable Rate for the remaining 23 years
Find Out if a Conventional Loan is Right for You
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