Conventional loans are our most popular for a reason. They can be used to purchase or refinance a home, borrowers can opt for fixed or adjustable interest rates, and the minimum down payment is 5%. A 3% down payment option exists for first-time homebuyers and other qualifying borrowers.
After 20% equity is reached in the home, mortgage insurance drops and borrowers can save thousands of dollars over the long term. Sellers are also allowed to assist buyers with closing costs when using a conventional loan.
Many homeowners that financed homes through FHA loans switch to a conventional when refinancing in order to drop monthly mortgage insurance payments. With a conventional loan, after 20% equity is reached, mortgage insurance drops and borrowers can save thousands of dollars over the long term.
Think your ready to take the leap? Contact us today or Find an Office near you and together we can prepare you for your journey to financial security.
For more information about the home buying process, click the link below to receive our free eGuide.
First Time Homebuyers / Home Loans
Five Low and No Down Payment Mortgage Options for 2017
Home Loans / Home Buying
What is Mortgage Insurance and Do I Need It?
Don’t Have a 20% Down Payment?No Problem.
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