Conventional

Competitive Rates with More Flexibility

Conventional Mortgage

A Conventional Mortgage refers to any housing loan that is not insured or guaranteed by the Federal Government. They can be conforming or non-conforming loans, and typically require at least a 3% – 5% down payment.

Private Mortgage Insurance – protects the Lender from loss should the borrower default – and adds a premium that increases the borrowers’ monthly payment.

Purchase Transaction – if a borrower puts 20% or more down, private mortgage insurance is not required.

Refinance Transaction – if a borrower has more than 20% equity in the property as determined by a qualified appraisal valuation, private mortgage insurance may not be required.

Conventional Loan Programs

Conforming

In the United States, the conforming loan limit is $453,100. In certain high-cost areas, that limit is extended.
Non-Conforming (Jumbo)

These loan programs offer financing for loan amounts that exceed the conforming or high balance limits. Although lenders differ on what constitutes a Super Jumbo mortgage, most loans greater than $650,000 are considered Super Jumbo loans.
Fixed-Rate Mortgage

Fixed-rate mortgages protect you against rising rates since the interest rate remains the same for the entire term of the loan. The term means the length of time your loan is amortized. [ 10, 15, 20, 25 or 30-year terms] are common lengths to choose from.

The lower term options have lower interest rates but higher monthly payments. The higher term options have higher interest rates but lower monthly payments. If you plan on staying in your home for a longer time frame, a fixed-rate mortgage could be the right solution for you.
Adjustable-Rate Mortgage

An adjustable-rate mortgage (ARM) is a loan term option with interest rates that can change periodically after the initial fixed-rate period. After this introductory period, monthly payments are susceptible to increases or decreases based on market fluctuations, which can also affect the monthly payment.