Conventional Fixed Rate Mortgage

A ā€œConventionalā€ (Conforming) Fixed Rate mortgage is ideal for borrowers needing a loan under $726,200 that plan to stay in the home for several years.Ā  A ā€œconventionalā€ (conforming) mortgage is a loan that conforms to established guidelines for the size of the loan and your financial situation.

Features ofĀ Conventional Fixed Rate Mortgage

  • Maximum loan amount is generally limited to $726,200 for a single-family home (limits may be higher in regions where home prices are higher)
  • Typically requires at least 5 percent down payment although options as low as 3% down could be available. (Terms improve with higher down payment amounts)
  • Popular fixed rate loan terms include 30-year, 20-year and 15-year (the longer the loan term the lower the monthly payments but also the more interest paid over the life of the loan)
  • Eligible for first time homebuyer or repeat buyer
  • Eligible for primary residence, secondary home or investment property

Benefits of Conforming Fixed Rate Mortgage

  • Interest rate does not change over the life of your loan, so easy to budget for monthly payments
  • May offer a lower interest rate and APR than other types of fixed-rate loans



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