Conventional Fixed-Rate Mortgage Loans
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An Array of Conventional Fixed-Rate Mortgage Loans
The professional, knowledgeable mortgage brokers at Liberty Lending Consultants are proud to help you find great low rates on a conventional fixed-rate mortgage loan. There are a number of reasons why conventional loans are some of the most popular on the market – including low interest rates and fewer hoops to jump through – and our seasoned loan experts welcome the opportunity to help you determine if this is the right loan option for your unique situation.
What is a conventional fixed-rate mortgage?
A conventional fixed-rate mortgage is a popular option for many homeowners. It allows a borrower to budget and plan for their future by knowing exactly what their monthly payment will be due to the fixed interest rate. This type of mortgage may also have a lower interest rate than other loans.
If you are considering getting a conventional mortgage, you will want to do your homework. You must meet some requirements to qualify for the loan, including a minimum credit score and down payment. In addition, you will need to complete an official mortgage application.
A fixed-rate mortgage is a good choice if you plan on living in your home for a long time. The interest rate you receive is based on your personal financial profile. For example, if you have a lot of money in the bank, you may be able to receive a lower interest rate. However, a fixed-rate mortgage is not for everyone. Some people may prefer an adjustable-rate mortgage. On the other hand, a conventional fixed-rate mortgage is a popular choice because it offers a predictable payment plan and stable interest rates. The mortgage rate you are offered is based on the size of your down payment and the terms of your loan.
Conventional loan benefits and considerations
Conventional fixed-rate mortgage loans are popular for buyers looking to purchase a home. They are backed by private or commercial lenders. These loans are characterized by a higher down payment and lower interest rates. However, there are a number of other things to consider before taking out a conventional loan.
In order to qualify for a conventional home loan, you must meet strict financial standards and have an adequate credit score. The lender will perform a credit check and look at your debt repayment history and spending habits. You will also need to show that you can afford to repay the loan.
The best way to determine whether a conventional mortgage is right for you is to compare different options. There are several types of conventional loans, such as conforming loans, non-conforming loans, or a jumbo loan. If you are unsure of which type of loan is right for you, it may be best to speak with a mortgage loan officer.
For the best conventional fixed-rate mortgage rates, you should have a credit score of 700 or above. Some lenders may require you to have a score of 660. If you have a low credit score, you may still be able to qualify for a government-backed loan. The down payment requirement on a conventional mortgage is larger than for a government-backed loan. Most lenders require a minimum of 5%, but you can get a down payment as small as 3% for a first-time homebuyer.
What Are the Advantages of Conventional Fixed Rate Mortgage Loans from Liberty Lending Consultants?
- 5% Down (Currently 3% Down for First-Time Homebuyers)
- Great Fixed Rates from 10 Years to 30 Years
- Monthly PMI (Private Mortgage Insurance) Can be Eliminated on Most Loans
- Purchase or Refinance
- Usually Fastest Turnaround Times
- Owner Occupied or Investment Properties
- Oftentimes Even the Closing Costs Can be Rolled into the Loan
Conventional loan requirements and qualifications
If you are looking to purchase a home, you may have heard about the advantages of a conventional fixed-rate mortgage loan. Unlike a government-backed loan, a conventional loan offers no guarantee that you will be able to repay your loan. However, you are more likely to receive a lower interest rate if you have a high credit score. Conventional mortgages can be used to purchase a primary residence or an investment property. In addition, you can take advantage of down payment assistance programs.
The down payment requirement varies by lender. While most lenders require 5%, there are some state programs that allow you to put as little as three percent down. Those with less than 20% down may need to pay private mortgage insurance. You can get out of paying this insurance by having the lender cancel it. When you apply for a conventional loan, you will need to fill out a mortgage application and provide documents showing your income, assets, and credit history. Many lenders will require a credit score of at least 620, though you should speak with a Liberty Lending representative to learn about your personalized loan options.