Mortgage Resources | Conventional Loans
Q: What is a Fixed-Rate Conventional Mortgage?
A: A conventional loan is a loan made to a buyer by a commercial lender without a third-party participant, such as FHA , VA, etc. Fixed rate conventional loans are typically paid off in equal monthly payments spread over 15, 20, or 30 years. The interest rate stays the same for the life of the loan.
Q: What are the terms of a conventional mortgage?
A: : Terms vary among lenders, but many can be obtained with as little as 5-10% down. When the down payment is less than 20% it is necessary to obtain private mortgage insurance to protect the lender from a buyer's default.
Q: What are the advantages of a conventional mortgage?
A: : Quick processing and stable payments.