30 Year Conventional Mortgage
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30 Year Conventional Loan
Best for:Buyers with a good credit score and money for a down payment.
What it is:When it comes to loan programs, the traditional 30-year fixed-rate conventional mortgage is one of the most popular. With a constant interest rate and monthly mortgage payments, it is a great option for those looking for consistency in their payment program. For prior homeowners, the down payment can be as low as 5%, and for first-time home buyers it can reach as low as 3%.
Keep in mind that if the down payment is less than 20%, Private Mortgage Insurance (PMI) will be required, but will drop off once your loan reaches 80% loan-to-value (LTV).
Unlike government loans, conventional loan programs place more importance on the borrower’s financial qualifications. Meaning, that when you apply for a conventional loan, you will get a better rate if you have better qualification factors. These factors can include: higher credit score, significant liquid assets in your bank account, and low debt-to-income ratio.
30-Year Fixed Loan Pros and Cons
Low Monthly payments
3% and 5% Down Payments Available
PMI will cancel once 20% equity is reached
Heavily dependent on credit score and income.
Potentially higher interest rate, in contrast to other loan programs.
Unsure which mortgage program will best fit your needs? contact us and one of our home loan advisors will help find a program that best fits your unique situation.
Office Address2907 Bridge Avenue
Point Pleasant, NJ 8742