Conventional mortgages are the most popular option for borrowers looking to purchase or refinance a home. Borrowers may choose between fixed- and adjustable-rate mortgages with terms from 10 to 30 years. Conventional mortgages are not insured or guaranteed by any government agency and may be sold to Fannie Mae or Freddie Mac.
Many borrowers enjoy the consistent monthly payment that comes with a fixed-rate Conventional loan, as this tends to make budgeting easier. However, adjustable-rate mortgages (ARMs) are also available and could be a better option for you. Your Loan Originator will talk you through both options, and work with you to secure the best option for your situation.
Why Get a Conventional Loan?
Competitive interest rates.
Low down payments.
Credit scores as low as 620 may be accepted.
Fixed rates offer consistent monthly payments and simplify planning and budgeting.
Many choices in loan structure (fixed-rate mortgages and adjustable rate mortgages at differing term lengths).
- Available for purchase, refinance, or cash-out refinance.