- Loan payment remains fixed for life of loan.
- Typically requires 5% down; however, there are special programs allowing 3% down.
- Private mortgage insurance is required with less than a 20% down payment or 20% equity on a refinance.
- Minimum middle credit score is 620.
- Loan terms of 10, 15, 25 or 30 years.
- Fannie Mae and Freddie Mac are conventional loans.
The conventional fixed rate loan is one of the, if not the most popular mortgage chosen for a purchase or refinance in the mortgage industry. Unlike some government loans conventional loans do not require an upfront mortgage insurance premium. FHA, VA and USDA require a substantial upfront mortgage insurance premium that can vary from 1% to 3.3% of your loan amount; therefore, having an experienced licensed Mortgage Loan Originator to show you these options is writing will help you make the best choice in selecting the loan product right for you. The greatest benefit of the conventional fixed rate loan is that you know your mortgage payment will remain the same every month with consistent monthly principal and interest payments, it’s an ideal choice if you plan on staying in your home 10 years or longer.