A Conventional Home Loan May Be Your Best Choice!
Qualified Home Buyers Get Lower Interest Rates & Fees!
Mortgage interest rates are still at some of the lowest in history. For qualified home buyers, this time may be your best opportunity to purchase a new home using a conventional loan.
Money Saving Benefits Of A Conventional Home Loan For Qualified Buyers
- Lower Interest Rates. Generally, the qualifications for a conventional loan require a higher credit score than non conventional loans such as FHA. The higher your credit score, the lower the risk to the lender. Lower risk on the part of the lender means a lower interest rate to you.
- Zero Mortgage Insurance Premium. Many non conventional loans, such as FHA, are required to include (MIP) Mortgage Insurance Premiums, to be included into the monthly payments. These payments continue over the course of the loan. In addition, when an FHA loan closes, the buyer is required to pay an upfront, one-time MIP fee of 2.25% of the loan amount. Conventional loans do not require an MIP fee upon closing or over the course of the loan. This helps to save you money.
- Flexible Terms. With a conventional home loan, you’ll have several different repayment terms. These repayment options may offer lower interest rates. Keep this in mind, the faster the term period, the lower your rate! For example, a 15 year loan will have a lower interest rate than an 30 year loan. Your Priority Mortgage Funding Loan Consultant will guide you as to which term option may be the best for your needs.
The Bottom Line On Conventional Loans:
If you, as a homebuyer, have the available funds for a standard downpayment of between 5% to 20%, a good credit rating, records of steady employment and a low, loan-to-debt ratio, then a conventional home loan may be your best money and time saving option.