If you are looking for a traditional approach for your home financing needs, Certainty Home Loans offers fixed rate conventional home loans with terms up to 30 years.
A 30-year home loan provides more time to repay the loan and generally provides the homeowner with a lower monthly payment amount. However, a 15-year home loan will have a higher monthly payment, but cost you less in the long run.
Conforming or Non-conforming?
Conventional loans can be either conforming or non-conforming. A conforming loan is a mortgage loan that falls within government-sponsored enterprise—Fannie Mae and Freddie Mac—guidelines. These behind-the-scenes government entities set the national conforming loan limit and actually drive the home loan market.
Non-conforming loans generally offer a wider range of acceptance and will likely bear a higher interest rate than conforming loans. Reasons an applicant may not meet conforming loan criteria include credit history, recent bankruptcy, debt load, or problems securing documents surrounding employment, income, or assets. When a borrower does not meet (or “conform” to) the guidelines of a conforming loan, he or she may wish to explore non-conforming loan options.
What’s the conforming limit for your county?
Every county in the U.S. has its own conforming loan limits. The FHFA decides at the end of each year limits if they will change the conforming loan limits for the upcoming year, starting on January 1st. In 2019 they can range anywhere from $484,350 for much of the U.S. to $679,650 for some areas in Colorado, D.C., Maryland, and Virginia. Click here to view the limits in your county.
Highlights of a Conventional Fixed Rate Home Loan
- Your interest rate is locked in for the term of your home loan. You’ll be able to budget with confidence, knowing your monthly principal and interest (P&I) payments won't change during your loan term.
- A 620 minimum FICO credit score is required to be eligible for a Conventional home loan, however, programs for non-traditional credit with no credit scores are available with additional terms.
- Conventional home loans are available to purchase or refinance your home, repair or remodel your new home purchase, or to refinance and remodel your current home.
Conventional Mortgage Sample Comparison
APR current as of 6/6/2018 is subject to change daily without notice and assumes a minimum FICO score of 720. No HOA fees on an owner-occupied single-family residence. Monthly payment includes the principal and interest but does not include taxes and insurance. The actual monthly obligation will be higher. Loan amount based on an LTV of 95.00%. Closing costs for 15-year fixed rate loan estimated to be $5,744 and $5,744 for a 30-year fixed rate loan.
|Sales Price: $215,000
||Sales Price: $215,000
|Loan Term: 15 years fixed rate
||Loan Term: 30 years fixed rate
|Down Payment: $43,000
||Down Payment: $43,000
|Loan Amount: $172,000
||Loan Amount: $172,000
|Interest Rate: 3.875%
||Interest Rate: 4.5%
|Est. Monthly Payment: $1,261.52
||Est. Monthly Payment: $871.50
|Est. Total Payments over full term of loan: $227,073.60
||Est. Total Payments over full term of loan: $313,740.00