Conventional Loans

Conventional Loans

WHAT ARE CONVENTIONAL LOANS?

Conventional Loans are mortgage loans that are not insured by the government (like FHA, VA, USDA Loans), but they typically meet the lending guidelines that have been set by Fannie Mae or Freddie Mac. Typically, conventional loans have better rates, terms and/or lower fees than other types of loans. However, conventional loans typically require a borrower to have good-to-excellent credit, reasonable amounts of monthly debt obligations, a down payment of 5-20% and reliable monthly income. Conventional loans are ideal for borrowers with excellent credit and at least a 5% down payment.

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MOST COMMON TYPES OF CONVENTIONAL LOANS

Fixed Rate Mortgages: Your rate and payment never change.

  • 30 Year Fixed Loan
    Benefits: Lowest fixed monthly payments

  • 20 Year Fixed Loan
    Benefits: Low fixed monthly payments

  • 15 Year Fixed Loan
    Benefits: Lower rate than the 30 or 20 Year Fixed Loans; Pay less interest and pay your home off more quickly.

  • 10 Year Fixed Loan
    Benefits: Lower rate; Pay off your loan and build equity faster.

  • 5 Year Fixed Loan
    Benefits: Lowest rate; Pay off your loan and build equity the fastest

Adjustable Rate Mortgages: After the initial period your interest rate can change once a year.

  • 3/1 ARM
    Fixed Rate for 3 Years, Adjustable Rate for the remaining 27 years

  • 5/1 ARM
    Fixed Rate for 5 Years, Adjustable Rate for the remaining 25 years

  • 7/1 ARM
    Fixed Rate for 7 Years, Adjustable Rate for the remaining 23 years





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At Acre Mortgage & Financial, Inc. you are our top priority. Whether you are a first-time home buyer or an experienced one.

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