A Conventional Mortgage is simply any mortgage loan that is not insured or guaranteed by the federal or state government. Conventional Mortgages typically require a higher down payment, usually 5%–20%. They also have higher income and credit score requirements than government loans.
Conventional Mortgages can have a fixed interest rate or an adjustable interest rate. Typical fixed-rate loans have a term of 30 or 15 years. Mesa Mortgage offers conventional home loans.
Conventional Mortgage overview:
- Buyer has immediate equity in the property.
- No private mortgage insurance is required with a 20% down payment, which is a great advantage.
- Lower closing costs and fees.
- Closing costs and fees may be included in the loan.
- Repayment terms are generally more favorable.
- Fewer bureaucratic hurdles, making the loans quicker to process.
- No government stipulations and prepayment penalties if you sell or refinance your house.