Conventional Fixed Rate Mortgage

A “Conventional” (Conforming) Fixed Rate mortgage is ideal for borrowers needing a loan under $795,000 that plan to stay in the home for several years.  A “conventional” (conforming) mortgage is a loan that conforms to established guidelines for the size of the loan and your financial situation.

Features of Conventional Fixed Rate Mortgage

• Maximum loan amount is generally limited to $795,000 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