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.